The research firm said that among the different pay TV platforms, telco TV service revenue is growing the fastest as broadband penetration and internet speeds ramp up.

In terms of telco TV service revenue, Western Europe captures the largest market share with 59 percent. North America and Asia Pacific are the second and third largest telco TV markets. In the Asia Pacific region, telco TV service revenue is expected to grow rapidly during the next few years.

In 2009, Asia Pacific telco TV service revenue comprised 10 percent of the total market, and it is expected to achieve 25 percent by 2015.

Jason Blackwell, practice director at ABI Research, said: “As a result of the positive market outlook for pay TV. Global pay TV revenue will net more than $312 billion for cable and telecom carriers in 2010.”

Khin Lynn, research associate at ABI Research, said: “Pay TV operators need to aggressively promote the purchase of HDTV set top boxes in order to lift ARPU. This does not have to come through subsidies. Carriers could do a better job of promoting the benefits of HD for the end-user viewing experience. Furthermore there is the promise of 3D TV. At present many users are not clear what the benefits are.”

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