Everything besides plain vanilla Internet access, such as IP telephony, online gaming and IPTV, is known as broadband value-added services (BVAS). That acronym has the full attention of broadband marketers, as they look beyond commoditized high-speed Internet access to more profitable premium services.

Measuring services across both business and consumer broadband lines, Point Topic estimates that BVAS generated revenues totaling $37 billion worldwide in 2006.

In percentage terms, business BVAS is contributing a higher proportion to total broadband revenues than consumer BVAS.

In business BVAS, security services, IP-VPNs, software-on-demand services and VoIP were the four leading revenue-earners. For example, Point Topic estimates that additional revenue from security services exceeded $9 billion at the end of 2006.

The market for consumer BVAS has grown even more impressively than the business sector. In value terms, the top five contributing services in 2006 were, security, IP telephony, gaming online, home networks and music. Point Topic’s most recent estimates show that IP Telephony, defined as full-service phone-over-broadband offerings, has now topped security to be the value-added service that generates the greatest revenue.

Double play, (voice and Internet) and triple-play (voice, TV and Internet) offers are now the norm for most broadband access providers worldwide. Among BVAS, IP telephony and IPTV services are generating the greatest monthly average revenue per user (ARPU) at $14.34 and $17.49, respectively. The ARPU for these services is falling, however, suggesting that increased competition is driving prices down.

Online music is also an important broadband value-added service. Read eMarketer’s newest music report, Recorded Music: Digital Falls Short, for more on the sector.