Sales of such video phones with powerful capabilities will grow to about $125 billion by 2010 from nearly $58 billion last year, according to the report.

The number of video subscribers is also expected to increase from only a few million last year to 58.6 million in 2010.

"Despite some concerns around the business plan and subscriber take rates, major service providers continue to move forward with their mobile video network rollouts. In addition, governments are very quickly lining up behind various mobile video technologies to help facilitate deployments, with the EU's endorsement of DVB-H and the Chinese government's sponsorship of CMMB being the two most visible efforts," said Jeff Heynen, an analyst at Infonetics, in a statement.

CMMB, short for China Mobile Multimedia Broadcasting, was adopted by China as the official national standard for mobile TV, while the EU has selected DVB-H as its technology of choice. Infonetics estimates there will be 11.7 million DVB-H subscribers by 2010.

Other findings in the report show that worldwide service provider revenue from mobile video services will triple between last year and this year, growing at a compound annual growth rate of 135% through 2010.

North America is behind other regions when it comes to adopting mobile video. Europe, the Middle East, and Africa were the leading regions for mobile video service revenue last year with 42% of the worldwide total. Asia Pacific followed with 35%, while North America only accounted for 16% of the total worldwide revenue.