So-called "Over The Top" Internet-driven video services are causing bandwidth problems for telcos and IPTV services.
Austin-Tx-based IMS Research estimates bandwidth use for telcos and IPTV services was at 44% capacity at the end of 2010. This will move up to 50% between 2010 and 2015.
Growing OTT services -- video services that use an Internet/fiber-optic connection -- will total $32 billion in revenues over the next five years, and will be a major feature of IPTV services for pay TV content.
"What we have now is a situation where the telcos are actively seeking solutions to optimize bandwidth," says analyst John Kendall in a release. "OTT is here to stay, and the telcos have accepted that."
Paul Erickson, analyst with IMS Research's Consumer Electronics Group, adds: "These new devices are forecast to supplant game consoles as the dominant OTT video client over the next few years."
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IMS Research warns that bandwidth congestion challenges are greater in countries with lower broadband penetration. IMS Research expects Eastern European and Latin American DSL providers to struggle acutely with video-generated congestion issues.
One key example: In 2010, France had peak potential bandwidth demand at just over 37% of network capacity. But it will rise to nearly 60% by 2015, mainly due to OTT and multiscreen video.