Consumer VAS revenues to reach $420 billion by 2020

Telecom Lead Asia: With increasing penetration of
broadband value-added services and declining margins in the basic broadband
business due to competition, the consumer value added services will triple from
$125 billion worldwide in 2011to $420 billion in 2020, predicts Oliver Johnson,
CEO of Point Topic.

Speaking at CommunicAsia 2012, he said that VoIP is
currently the top revenue earner and will be trumped by IPTV by 2020.

Online and traditional offline services will give firm
competition to consumer value added services, and growth may not be easy for
some services, Johnson noted.

  Development may be harder for some markets than
other. For example, security already has a penetration rate of over 85 percent,
so being able to grow this further will depend on developing other security
related services, or on the advent of a virulent and destructive online
threat,” Johnson said.

In the face of global competition, Johnson said that it
is required for ISP to offer right bundles for their consumers in a particular
market, signing the right deals and maintaining a customer base to see success
in the next few years.

Johnson concluded, Challenges lie ahead for all and the
internet can be fickle, but the right player with the right service, or more
likely set of services, has the chance to sweep all before them.” 


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