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Telcos face OTT bandwidth challenge, says report

IPTV operators face substantial challenges adapting their networks to accommodate over-the-top video, according to IMS Research.

IMS Research’s Global Bandwidth Utilization Model estimates that in 2010 peak bandwidth utilization was 44% of capacity and that the bandwidth usage per household is forecast to increase by more than 50% between 2010 and 2015.

IMS Research also forecasts that pay OTT subscription services will generate a cumulative US$32 billion (€23 million) in revenues globally over the next five years, and will account for a larger part of the market than pay-per-view services that enable users to rent or purchase videos on an ad-hoc basis.

“What we have now is a situation where the telcos are actively seeking solutions to optimize bandwidth,” said IMS Research analyst John Kendall. “OTT is here to stay, and the telcos have accepted that.”