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Telcos invest heavily in triple-play

Telecoms service providers around the world are putting around 40% of their capital expenditure into setting up and providing “triple-play” services to customers.

Triple-play includes voice, data and video services.

Analyst Infonetics Research said triple-play services were not merely a means of increasing top-line revenue for service providers, but a “means of self-preservation”.

Infonetics said operators were redefining and realigning themselves to be a one-stop shop for all things digital for residential and enterprise subscribers in the belief that triple-play services would give them the competitive edge they need to succeed.

The majority of service providers in the Infonetics study plan to further increase capex spending in the next 12 months on IPTV equipment, broadband customer premises equipment, broadband aggregation equipment, and voice over broadband equipment.

Service providers expect revenue growth in all areas of triple-play services in the next 12 months, according to the analyst.

“With nearly 40% of their capex budgets going to triple-play service infrastructure, service providers are sending a clear message that the combination of voice, data, and video services is a long-term differentiator for them,” said Infonetics analyst Jeff Heynen.

“Carriers are demanding complete interoperability, full standards compliance, and an open and flexible architecture from their suppliers to ensure the content and services they provide will work right out of the box and far into the future,” he said.

Cisco, Alcatel and Microsoft are the leading providers of triple-play aggregation solutions for providers, according to Infonetics.


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