53% of broadband value-added revenues come from security, 24% – from ASP

Broadband value-added services for business users showed revenue growth of just over 60% during 2004, Point Topic says. At the start of 2004, revenue was running at a yearly rate of around $2.3 bln. This figure grew to $3.7 bln by year-end 2004. Growth in BVAS revenues was lower than the rate of growth in the number of business broadband lines. These grew from 10.6 mln to 19 mln during 2004, an increase of 79%. Most businesses continue to obtain and use their broadband connections just for Internet access and related applications such as email. Relatively few use broadband to increase the efficiency of their internal business processes.

Business broadband access revenues (the total revenue from installation and connection charges) grew more slowly than the number of lines during 2004, increasing by just under 50% from $13 bln to $19 bln. This was because of reducing average tariff levels during the year. So, by the start of 2005, business value-added services were therefore adding around 19% to basic revenues, a very slight increase from the 18% contribution at the beginning of 2004. For the year of 2004 as a whole, Point Topic estimates that the contribution of BVAS was also 19% of total revenues.

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