Time Warner Cable has launched a pilot service to allow cable customers with broadband to access cable television channels over their network connection -- The Broadband TV service is currently only available to some 9,000 subscribers in certain parts of San Diego, California. It will allow cable customers with the Road Runner broadband service to view selected channels on a personal computer, without any additional subscription. Basic cable customers will be able to see a limited number of channels, while those with higher levels of service will be able to see up to 75 channels. The Broadband TV service is delivered over the private data network of Time Warner Cable and it is not possible to access the service remotely, or to record programmes. The service currently only supports Windows PCs with Internet Explorer and RealPlayer 10. The trial service will be an interesting test of the attitude of programming suppliers to the delivery of their channels over a data network. It comes as major telecommunications companies in the United States are planning to launch IPTV or internet protocol television services to compete directly with the cable companies.
Telecom and pay TV providers are entering a period where traditional connectivity revenue is growing at well under 2 percent a year worldwide, even as traffic volumes, quality expectations, and competitive pressures continue to rise. This widening gap between flat service revenues and escalating investment needs is the central strategic challenge now confronting network operators, tech vendors, and investors across the communications value chain. This transitional environment forces service providers to pivot from "grow by adding lines" to "grow by monetizing experiences, insights, and ecosystems." Enterprise digital transformation, 5G, fiber, and cloud computing are all necessary enablers, but none of them automatically translate into higher ARPU or margin; they need to be coupled with new value propositions and operating models. Telecom and Cable Market Development According to the latest IDC market study, worldwide spending on telecom and pay TV services is expec...