Taiwanese IP STB Industry Expected to See Continued Growth in 2008

According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, high growth of the Taiwanese IP STB (Internet Protocol Set-Top-Box) industry is expected to continue, boosting the industry’s global shipment share, due to the influx of contract-production orders from major branded vendors and more orders from US and European telecom carriers. Shipment volume of the Taiwanese IP STB industry in the fourth quarter of 2007 was estimated at approximately 1.1 million units, representing year-on-year growth of 190.5%. It is expected that shipment volume will increase 178.5% year-on-year in the first quarter of 2008, reaching 1.3 million units.

After mid-2007, the world’s major telecom carriers have become more aggressive in upgrading DSL (Digital Subscriber Line) networks, increasing demand for IP STB, and intensifying the development of integrated broadband services. As a result, shipment value of the Taiwanese IP STB industry skyrocketed 217.6% year-on-year to US$118.8 million in the third quarter of 2007, with shipment volume soaring 152.7% year-on-year to 892,000 units.

Due to the focus on HD (High Definition) channels, IPTV service providers had much higher demand for IP STB with HD functions. Shipment share of these models in the Taiwanese industry advanced to 33.8% in the third quarter. Shipment volume of models with built-in hard disk drives also grew steadily, amounting to 621,000 units in the first three quarters of 2007. ASP (Average Selling Price) remained stable on increased shipment share of high-end models.

Following several years of preparation and trial operations, the world’s major telecom carriers saw their IPTV subscribers grow conspicuously in 2007. French IPTV subscribers have reached a high level and US IPTV services are taking major strides, thanks to low-priced bundled services, content expansion, and diversified applications. Success of the two countries has prompted telecom carriers in other countries to speed up their IPTV service deployment, which, along with the growing maturity of IPTV software and hardware products, has driven the commercialization of global IPTV services. The global IPTV subscriber base exceeded the nine million mark in the third quarter of 2007.

More information can be found in the following MIC reports: The Taiwanese IP STB Industry, 4Q 2007.