The number of worldwide subscribers for Internet Protocol (IP) TV is expected to rise at a compound annual growth rate (CAGR) of 92.5 percent from 3.9 million in 2006 to reach 103 million in 2011, as the competition heats up for the delivery of bundled voice, Internet and entertainment services, according to the latest report from market research analyst iSuppli Corp.

IPTV subscription revenue is projected to grow more than 40 fold between 2006 and 2011, iSuppli said, rising from $960.5 million to $39.1 billion.

"IPTV promises to add interactivity, personalization, integration of voice and data and value-added services to television entertainment," said Frank Dickson, principal analyst for miltimedia content services at iSuppli(El Segundo, Calif.). "Because of the wide variety of services offered by the technology, companies from various industries are being drawn into the IPTV/triple-play fight, sparking intensified competition among market participants."

iSuppli said cable television and telecommunications providers in North America are battling for IPTV revenue. The cable companies are using their significant installed base of pay television subscribers and fast data rates using their cable-modem technology as they expand their services into data and voice communications, which telecom companies view as "an act of war," iSuppli said.

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