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Welcome to CrossTalk, a Telco-Broadband publication designed to provide you with timely, valuable information in a clear and simple format. Crosstalk strives to provide a centralized guide to the latest market research and technology advancements that allow our industry to stay competitive, reduce customer churn, and increase profitability. We will also provide updates on the latest developments here at Actiontec. We hope you enjoy this issue, and continue to look for our updates in the future. We also look forward to any feedback you may have on how we can make this newsletter more valuable to you.
New from Actiontec Electronics

Two new whitepapers: 4G LTE and Home Network Security

Actiontec has released two new whitepapers. The first paper, titled 4G LTE Market Update, summarizes the latest news, events, technology advancements and market statistics for the 4G LTE wireless broadband market. Broadband service providers of all sizes will learn how they can benefit from this new technology and market. The second report, Understanding Home Network Security, highlights some of the known security issues and offer suggestions to all service providers and end users on how they can create and maintain a secure home network.

Actiontec V1000H Named Best Router by Network Products Guide

Data from the FCC

The FCC has released many reports in the past few weeks, including "High-Speed Services for Internet Access: Status as of December 31, 2008." This report features some very relevant data and we strongly recommend downloading and reading it. The report finds that, not surprisingly, broadband penetration continues to grow, with 77 million fixed high-speed subscribers (homes and businesses) in the U.S. Cable, meanwhile, has 41 million subscribers, and DSL, 30 million. Clearly, the DSL market is saturated. FTTP (Fiber-To-The-Premises) has grown to 3 million subscribers. Interestingly, as of December 2008, DSL only added 6000 new residential high-speed connections. Most of the growth came from cable and other fixed broadband.

To receive this report, click here.

Another interesting FCC report is "Telephone Penetration by Income by State (Data through March 2009)." This report covers the details of regular telephone usage in households of all sizes.

To get this report for free, click here.

The FCC has also released "Local Telephone Competition: Status as of December 31, 2008." This offering highlights the percentage of connections by type of connection, including VoIP, and finds that, by end of 2008, there were over 21 million interconnected VoIP subscriptions in the U.S.

The report also highlights the type of Internet access used with interconnected VoIP, as shown in the figures below.

For more information, click here.

FREE Market Research

Mobile Access 2010 by Pew Research
Pew Research's new study, "Mobile Access 2010" was released recently. Among its findings:

  • nearly 6 in 10 or 59% of American adults go online wirelessly.
  • this figure equals 86% of laptop owners or 47% of American adults
  • 49% of cell phone owners use the Internet, email or instant message from their phone, which is approximately 40% of American adults.
  • over half of American adults go online daily

To download this report for free, click here.

Bandwidth Challenges to the Digital Home: 2010 by The Diffusion Group
The Diffusion Group's latest study covers the challenges the digital home faces with respect to bandwidth. Interesting tidbits include:

  • Netflix had over 14 million subscribers at the end of Q1 2010, with 55% streaming movies to their TV or PC
  • to support 720p HD, Netflix recommends a broadband download speed of at least 5 Mbps
  • when 1080p HD is involved, this recommendation is likely to double to 10 Mbps
  • by 2014, 65 million homes in the US will have a broadband connected TV

To download this report for free, click here.

The Necessity of Content Flexibility in the Connected Home by Parks Associates
This free white paper from Parks Associates covers the need for content flexibility in today's digital home. It finds that:

  • the overall percentage of online video viewers has increased substantially
  • consumers want access to their content via multiple channels (online through the web and pc, via cell phone, via TV, etc.)
  • putting the content online or in the "cloud" will make it easier and more cost-effective for carriers to meet customer demands

To download this report for free, click here.

Pay TV vs A La Carte by The Diffusion Group
Another free paper from the Diffusion Group, "Pay TV vs. A La Carte," examines various questions regarding A la carte Pay TV offerings. Its high points include:

  • a discussion on the value of selling a bundle or pay-as-you-consume model for TV
  • finding that 44% of Pay TV subscribers are currently displeased at some level with their "tiered/bundled" channel plan.
  • description of the demographics of those who are more inclined to go with an a la carte plan

To download this report for free, click here.

The Digital Entertainment Revolution by In-Stat
This lengthy white paper (22 pages) includes data concerning advertising revenue forecasts and the type of devices used for accessing content. As mentioned in other reports, people will not be watching video content solely through a broadband connected TV. Some will use their Blu-Ray player, others a game console, and others a media center PC. In-Stat believes that by 2013, there will be 73.1 million online-enabled gaming devices, 56.7 million network-capable consumer media devices such as Blu-Ray players, and 45.2 million households with media center PCs and in-home network. Clearly, the infrastructure will be in place for video-watching from and through a variety of mediums.
To download this report for free, click here.

PAY FOR Market Research

Just a reminder: the following section highlights only some of the reports currently available. To get a full listing, click here.

Mobile Services and Subscribers: Voice, SMS/MMS, and Broadband by Infonetics Research
This latest from Infonetics Research "provides in-depth analyses and worldwide and regional market size and forecasts through 2014 for mobile services." Findings include:
  • number of mobile broadband subscribers is forecast to exceed 1.8 billion worldwide by 2014, or 28% of total mobile subscriber base.
  • mobile broadband revenue will double between 2010 and 2014

For more information, click here.

Early Demand for TVE Services - A Consumer Snapshot by The Diffusion Group
This new report from the Diffusion Group discusses the market for multi-screen TV delivery. Among their findings:
  • 60% of adult broadband users (about 95 million consumers) are enthusiastic about TVE services
  • 34% (about 54 million) are willing to pay at least $5 extra per month to enjoy such access.

For more information, or to purchase the study, click here.
Broadband CPE and Subscribers by Infonetics Research
Infonetics Research released their latest study, "Broadband CPE and Subscribers" recently. In it, they found that ADSL saw a big drop in Q1 2010, which is following the trend downward for ADSL (see FCC report, above). Jeff Heynen, directing analyst for broadband and video at Infonetics Research, writes, "In particular, we saw a big drop in ADSL CPE in Q1 2010, as operators are focused on deploying FTTH and VDSL2 services and are spending less to market their basic broadband services."

Other highlights include the discovery that cable subscriber growth is slowing, with more cable subscribers holding on to their 2.0 modems, severely hindering the transition to 3.0.
For more information, click here.

Consumer Storage Opportunities by Parks Associates
This study from Parks Associates reports on consumer storage opportunities. Key findings include:
  • almost 50% of households performing regular backups, compared to 35% in 2006
  • revenues from network attached storage devices expected to exceed $4.4 billion in 2014

Peitro Macchiarella, research analyst Parks Associates, concludes: "As people accumulate more digital content, the prospect of losing that data becomes more ominous. Companies marketing network-attached storage (NAS) and home server devices should target high-use consumers such as videophiles and music enthusiasts and demonstrate the ease with which these products protect against loss of critical data."
To see more, click here.

Upcoming Events

Past Issues of CrossTalk

Suggestion Box

Have an idea for an article, want to contribute an article, or just have a suggestion for improving this newsletter? Feel free to contact Lesley Kirchman at ljkirchman@actiontec.com. See you next time.
About Actiontec Electronics, Inc

Building off of a history of shipping 20 million Internet access devices, Actiontec Electronics leads the market in developing innovative broadband connectivity and broadband-powered solutions that simplify and enrich the digital life. Actiontec offerings range from the market's broadest selection of IPTV-capable broadband home gateways for bringing IP-based video services into the home, to DSL modems, wireless networking devices, routers and digital entertainment devices. The company's carrier-class products are easy to install, manage, and use, and are sold through retail channels and broadband service providers. Founded in 1993, Actiontec is headquartered in Sunnyvale, CA, and maintains branch offices in Colorado Springs, CO; Shanghai, China; and Taipei, Taiwan. For more information, call 408-752-7700 or visit http://www.actiontec.com.

Actiontec Electronics Inc. - 760 North Mary Avenue, Sunnyvale, CA 94085 -
Web: www.actiontec.com - Email: broadband-sales@actiontec.com

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