Nearly 40% of capital expenditures in 2005 by networks in the U.S. and abroad were on equipment to provide the so-called triple play package of voice, video and data.
That is according to a just-released survey by analyst company infonetics Research.
The majority or the companes, a mix of large and small providers, said they would spend even more in 2006, saying that the investment was not just about boosting revenue, but surviving in a competitive marketplace.
The cable industry has increasingly invested in voice over Internet protocol (VOIP) phone service as telcos gear up to get into video. The survey found that IPTV was "where the action is."
Among the findings:
"•The top 2 drivers for respondent service providers deploying triple play services are 1) increased broadband revenue per user and 2) new revenue streams.
"•The most pressing business challenge triple play service providers face is securing broadcast and on-demand video content; acquiring content is also a challenge.
"•iTV (interactive TV) is the fastest growing video service offered by service providers, bringing Internet capabilities directly to the TV screen, including instant messaging, shop at home, click to call and click to purchase capabilities, and, most significantly, online gaming services."