April 19, 2007

IPTV Getting Heavy Investments

by Kathryn Lang

With the IPTV continuing to chip away at the telecommunications market, providers will have to make a larger investment in infrastructure. Currently, the connections for most homes is too slow to appreciate (or in some cases even view) the IPTV opportunities that are already filling the Super Highway.

There is hope for the many consumers out there that are forced to live with the 1.5 Mbps (or less) download speed. 2007 is set to be the best year for expenditures on wired infrastructure equipment. The current projections have providers spending around $41 billion to upgrade their infrastructure.

It is a lot of money to invest, but experts are still not certain that even these large sums will bring IPTV to the masses any time soon. It is expected that much of the investment will fall within the core networks. This is the key to having bandwidth support and IPTV delivery.

Current budgets seem to show that companies are focusing resources on developing their IPTV offerings. Industry experts are forecasting a 98% growth rate in IPTV subscribers by the year 2011. This makes investing in the industry a wise choice for these providers.

The expansion of IPTV comes at the decline of other telecommunications for many providers. As the interest in the internet technology continues to expand, it likely that the investments by the telcos and other providers will also follow.

 

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