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IPTV, VoIP Investment High for 2007
2006-11-16
"The survey confirms our own observations - 2007 will be characterized by the four C''s -competition, consolidation, convergence and, most importantly, the customer," said Michael Matthews, chief marketing officer of Amdocs. "With ongoing market consolidation, continuing industry convergence and a highly competitive environment, service providers will place an increased focus on the customer experience in 2007. Consumers expect relevant offerings and personalized, responsive service, and providers indicate a significant increase in investments to address this need."
Increased Customer Focus
The survey results indicate that service providers are expected to increase their investment in customer service and network infrastructure, which will improve the customer experience:
Nearly 67 percent of respondents plan to increase their spending on customer service enhancements over the next year, with the average investment increase projected at 31 percent.
Service providers are planning to put more money into network infrastructure, with the average investment increase expected to be 33 percent.
Jump in Investment for IP-Based Services
Additional Amdocs survey predictions indicate that service providers anticipate continuing to roll out Internet Protocol or IP-based services. In the next year, according to survey respondents:
IPTV, digital TV, video content and VoIP (voice over IP) are expected to be the top products and services for 2007, with spending in network infrastructure for these three areas projected to increase significantly -- by 77 percent, 81 percent, 71 percent and 76 percent, respectively.
Projected Acquisitions
Survey findings also highlight an expected increase in merger and acquisition activity among service providers to bolster their digital offerings, expand market share in a slow growing marketplace and gain the economy of scale advantages:
One third of those surveyed believe that their company will merge with another in the next year.
Among the different types of service providers, broadband cable companies will be the most likely to merge, at 53 percent. However, none of the cable companies projected being acquired by another entity.
"We expect an increase in M&A activity among service providers and particularly among cable providers," added Matthews. "The goal of all service providers is to build out a full suite of IP-based services. This is an area in which size and scale will greatly contribute to determining the winners among service providers."
Amdocs commissioned Frost & Sullivan to conduct an international survey in August 2006. Survey respondents included 200 decision makers from Tier 1 and Tier 2 service providers in the U.S., U.K. and Canada, and included telecommunications companies, cable multiple service operators (MSOs), satellite TV providers, wireless operators, mobile virtual network operators (MVNOs), VoIP providers, and Internet service providers.
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VoIP Providers List Information |
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VoIP Providers Statistics |
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Providers in database: 3315
Users Online: 270
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