Voice, data and video bundling can increase APRU

Through bundling services and expanding the overall broadband customer base, service providers can attain greater average revenue per user (ARPU) growth, according to research from In-Stat.

The analyst firm said that by enhancing existing voice, data and video services through IP Multimedia Subsystems (IMS), an intelligent, converged network will open up market opportunities for many new services and applications.

"Service providers need to acknowledge that internet content is permanently changing consumers' views on content value and pricing," said Keith Nissen, In-Stat analyst.

"With regard to converged applications, providers need to understand that consumers will not pay twice for the same content, or duplicative services. Consumers will not necessarily pay extra for convergence that does not offer greater convenience and value."

In-Stat said that future home networks will be a hybrid of wireless, Ethernet, telephone and coax cabling and home networking-related services in the US will generate up to $1.4 billion for service providers in 2007, growing to $3.5 billion in 2011.