Skip to main content

Telco TV Delay Causing Subs Downgrade

ABI Research examined the nascent market for Telco TV, and the equipment needed to support advanced video delivery services. At that time, operators were planning quite rapid project deployments, and subscriber number projections were high.

The 2006 assessment paints a somewhat less rosy picture. Many projects have suffered delays, and many companies have downgraded their initial estimates of customer numbers and launch dates.

Michael Arden, principal analyst of broadband and residential entertainment technologies says, "Some technical and scaling issues -- certainly outside North America -- have created delays. More broadly, at least within North America, franchising issues and regulatory and legal aspects have contributed most to the delays in a number of systems. A couple of large projects are now seriously behind schedule."

However Asia, with several successful high-subscriber networks already rolled out, will show growth closer to ABI Research's previous estimates. Europe, and then North America, will follow more slowly than previously thought.

Scaled-back projects offer less to subscribers, and Arden points out that "Verizon, for instance, will not initially offer true IPTV functionality. They have delayed that for now, and are putting out only an RF overlay as their initial video service. To subscribers that is effectively identical to what's offered by the cable companies. So there's little incentive to choose Telco TV services. That will impact subscriber penetration numbers."

However there are bright spots. "We're seeing strong interest in MPEG 4," reports Arden. "Trials are under way, and although no MPEG-4 chips for set-top boxes have arrived yet, they're on the cusp of commercial production. Once that happens, there can be a big jump to MPEG-4."

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...