Increasing Telco TV Deployments a Boon for Headend Vendors Reports In-Stat.

SCOTTSDALE, Ariz. -- A large number of headends have been built in 2005 and 2006 to support increasing telco TV deployments, and the wide availability of H.264 compression equipment in 2006 has prompted telcos that were waiting, to move forward with deployment plans, reports In-Stat (http://www.in-stat.com). Growth in telco TV deployments and subscribers will result in the building of more than 800 headends between 2005 and 2010, the high-tech market research firm says. Upgrades to take advantage of technology advances will further fuel the telco TV headend boom.

"Much of the near-term upgrade revenue will come from telcos that are adding HD channels to their existing SD channel lineup," says Michelle Abraham, In-Stat analyst. "In 2009 and 2010, we expect telcos to replace equipment that is 4-5 years old, as compression algorithms will have improved to make the bandwidth savings worth spending the money."

Recent research by In-Stat found the following:

* Headends are built today mainly to "pass through" video streams. In-Stat expects that will change as telcos put an individual stamp on their TV offerings with services like ad insertion.

* Total telco TV headend revenue opportunity will reach US$869 million in 2010.

* There are large differences between telcos regarding the size and distribution of their headend infrastructure.

The research, "Telco TV Headends: A Booming Business" (#IN0603165MBI), covers the market for Telco TV headend hardware and middleware. In addition to forecasting the number of new headends built and upgraded annually, this research offers five-year worldwide revenue forecasts for broadcast content processing equipment, on-demand processing equipment, middleware, and content protection. All forecasts are divided by region: Americas, Asia, Europe, Middle-East, and Africa.

For more information on this research or to purchase it online, please visit:

http://www.instat.com/catalog/Ccatalogue.asp?id=289 or contact a sales representative:

Eastern North America: Tina Sheltra, 480.609.4531; [e-mail]

Western North America: Erin McKeighan, 480.609.4551; [e-mail]

Outside of North America: http://www.instat.com/sales.asp

The price is $3,995 (US).

About In-Stat

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.