Value-added services sold by broadband ISPs generated worldwide revenues of nearly $26 billion last year, up 62% from 2006, according to a recent study by Point Topic.
“We estimate that value added services were 10 percent of total broadband revenues, which includes subscriptions in 2003, but by the end of 2007 that has increased to over 30 percent,” explained Point Topic senior analyst, John Bosnell. “As it gets harder to make a profit in the hyper competitive line rental market, the operators and suppliers have to look to add value and revenue with their service offerings.”
VoIP and security services generated the majority (56%) of value-added revenue, followed by online gaming, home networking features, and online video services.
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