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Telcos Aiding Internet-TV Market

Telephone companies are installing more Internet TV,
driving higher demand for set-top boxes that the
support the service, a research firm said Monday.

As a result, shipments of
Internet protocol
boxes are expected to grow to 16.9 million in
2009 from 1.7 million in 2004, In-Stat said. By the
end of the forecast, IP/DSL boxes are expected to
surpass digital cable boxes.

Nevertheless, the research firm expects a shakeout
over the next few years among manufacturers.

"There are over 80 vendors offering IP/DSL set top
boxes today," In-Stat analyst Michelle Abraham said in
a statement. "That's too many vendors for a market of
this size. Only about 25 of them have telco

In other findings in the recent In-Stat study, the
average selling price of the IP/DSL boxes was highest
in the North America, due to the demand for a
digital video recorder,

playback and multi-room
capabilities. And the greatest technology shift in
IP/DSL boxes is the move to advanced vide compression,
which requires more memory and more powerful video
decoders than the current
MPEG-2 standard.