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IPTV
Junction notes is moving rapidly towards
mass-market adoption. The involvement of
incumbent telecoms operators in most major
markets by 2007 (France, Spain, Italy, UK,
Germany, Austria and the Netherlands, for
example) will provide the marketing, word-of-mouth
and - for the many conservative-minded television
viewers yet to switch to digital TV - the
credibility that could boost the market
for all IPTV providers.
Several
early IPTV deployments are now reaching
subscriber figures where they must be taken
seriously, including Telefonica in Spain,
which has over 200,000 subscribers for its
Imagenio television service (launched commercially
November 2004). The Spanish company is predicting
one million customers by 2008. France Telecom
(launched December 2003) doubled its customer
count during 2005, ending the year with
200,000 subscribers for its MaLigne TV service
too.
The
pace of deployment is accelerating:
Telekom Austria launched its aonDigitalTV
video-over-DSL service in Vienna in March
2006 and KPN in the Netherlands is preparing
for a second quarter (2006) commercial launch.
Deutsche Telekom is hoping to roll out its
100 channel broadcast TV (including HDTV)
and VOD service late summer 2006 and BT
has scheduled late summer/autumn for its
hybrid DSL/DTT offering.
Competition
is also increasing. Utility companies continue
to launch television services but the main
rivals to the big telcos are alternative
broadband providers using Local Loop Unbundling
(LLU). The second half of 2006 and 2007
will also see the expansion of incumbent
telcos into territories outside their domestic
markets - where necessary using LLU to compete
with their peers on leased networks.
France
Telecom has already announced that it will
launch IPTV in Spain, the UK and Poland
this year, followed by the Netherlands (not
to mention Mauritius, Senegal and the Ivory
Coast). Meanwhile Telecom Italia - through
its subsidiary HanseNet - is adding television
to its existing telephone and DSL services
in Germany, starting in Hamburg. Telecom
Italia also launched television services
in France (via Telecom Italia Frances
AliceBox triple-play service) in January.
Meanwhile, Deutsche Telekom subsidiary T-Online
is taking IPTV to Hungary, with a planned
commercial roll-out of TV-over-DSL in Budapest
and other major cities later this year.
And
to add further spice to this market, existing
Pay TV operators from the satellite and
cable world are buying into DSL. BSkyB bought
UK DSL network provider Easynet in January
(2006) to give itself a two-way network
and exploit the exciting opportunities
that now exist to combine quality entertainment
with significant high-speed connections.
Europes largest satellite TV provider
has told investors that it intends to introduce
IPTV some time after 2007. Meanwhile, UPC
Austria (part of the pan-European UPC group
owned by Liberty Global) has agreed to acquire
the Austrian xDSL provider Inode - so establishing
a national footprint, initially for high-speed
data and voice.
All
this activity is underpinned by network
upgrades across Europe. BT in the UK is
now committed to delivering ADSL speeds
up 8Mbps from 5,300 telephone exchanges
in the UK - putting broadband in reach of
99.6 per cent of the country. France Telecom
and Telefonica, among others, are using
ADSL2+ and Deutsche Telekom will deploy
television services exclusively on VDSL,
using the 50Mbps fibre/copper network being
built by its fixed network infrastructure
division, T-Com. T-Com expects VDSL in 40
cities by the end of 2007, putting 11 million
homes within reach of the planned IPTV service.
So
with high-speed networks available and expanding
their reach, multiple service launches and
growing subscriber figures, the big questions
are how much market share IPTV providers
can take from satellite and cable, and whether
they can make money - if indeed, video revenues
are their real motive rather than simply
reducing churn on voice/data customers.
Are there digital TV newcomers who will
choose IPTV ahead of digital terrestrial
- and are these the customers IPTV providers
want? And can companies differentiate their
services sufficiently from cable and satellite
to tempt existing Pay TV subscribers away
from them?
These
are among the many topics that will be discussed
at the IPTV World Forum 2007 in London -
the No.1 conference/exhibition for the IPTV
community. You can read more about the 2007
conference theme elsewhere on this site.
IPTV
World Forum 2007 provides a chance to assess
the lessons learned from video-over-DSL
and FTTH deployments in the preceding 18
months. With incumbent telcos like BT and
Deutsche Telekom preparing to deploy during
2006, and an increasing number of ISPs using
Local Loop Unbundling to offer competitive
services, the conference will assess the
impact of new services, the business models
used, marketing strategies and the many
technology issues that determine the service
offer and IPTV economics.
By
next year, it will be clear what impact
telecoms giants like France Telecom and
Telefonica are having in the Pay TV market
and what effect their video offers have
had in terms of reducing customer churn
and cementing relationships with voice/data
subscribers. With some business analysts
suggesting national telcos should retreat
from the video business as fast as they
got into it, a key theme for IPTV World
Forum 2007 is whether telco TV is working.
So
for 2007, the forum will be assessing the
motives of incumbent telcos, utility providers
and ISPs and asking whether their business
objectives are being met, at what cost,
and whether IPTV looks sustainable in the
face of content-rich satellite operators,
modernising cable companies and increasingly
successful free-to-air and Pay TV digital
terrestrial platforms.
IPTV
World Forum 2007 will consider the threats
and opportunities facing new video providers
- including the emergence of over-the-top
video services from Internet-based content
aggregators/downloaders like Google TV and
Apple iTunes. The conference will look at
how incumbent telcos in particular handle
their relationships with these companies
- including how they can partner with them,
seek to obstruct them, or beat them at their
own game.
The
conference will focus heavily on how IPTV
operators differentiate themselves in an
increasingly crowded television marketplace.
We will look at integrated voice/data/video
services, assess the full potential of IMS
(Integrated Multimedia Subsystems) and look
at how some telcos are seeking to put each
consumer at the heart of their own, personalised
video universe that stretches beyond the
home to their mobile devices and remote
Internet connections.
The
confeernce will assess service strategies
including how HDTV can be monetised most
effectively, and how PVR, network PVR and
Video on Demand can be harnessed to provide
seamless on-demand experiences. The conference
will examine how operators can link live
broadcast TV with on-demand TV and on-demand/interactive
advertising, and how interactive applications
can be exploited to increase customer satisfaction
and revenues.
Network
economics (including technology developments
in content distribution, headends and backbone/last
mile networks) will be assessed. The conference
will also consider home networking strategies,
including the best way to move video around
homes - and how the video experience can
be extended to portable devices. Customer
Premise Equipment and Digital Rights Management
technology and strategies will be assessed.
Content
strategies are another important subject
that will be covered at IPTV World Forum
2007 - including availability, pricing,
bundling, up selling, loss-leading and promotions.
The conference will look at what type of
content is working on IP networks today,
and what kind of content can help drive
ambitions for whole-home and mobile video
experiences. The conference will assess
locally created IPTV content and assess
whether telcos should make content king
- or focus on building services (like home
networks) that lock customers in.
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