Skip to main content

AT&T U-verse Pay-TV is a Work in Progress

According to the Yankee Group, while IPTV is the next wave of technology that will revolutionize the way we watch television. Unfortunately, IPTV is still years away because of the intensive rollout strategy that AT&T must implement to lay Fiber To The Node (FTTN) architecture to support the full spectrum of services.

Although trials are in place, it will take a few years for the company to reach its target of servicing 19 million households. With this lengthy time frame, cable operators have the opportunity to improve their services and strategies in order to fend off the impending competitive threat.

To fully develop strategies to keep the threats of AT&T and other telecom companies at bay, it is critical for cable operators to understand what IPTV is and how it compares with existing television offerings. There are many misconceptions about IPTV -- as opposed to broadband 'over the top' TV -- and how the user experience will be different for consumers.

As the U-verse launch in San Antonio has already proven, in the beginning the IPTV viewing experience won't be much different than existing Pay-TV offerings. However, as time progresses and more applications develop, IPTV's integrated platform will (or should) make the evolution process for advanced video services much quicker and simpler than what cable MSOs will need to do -- as far as network upgrades and service integration are concerned.

Yankee Group believes that although there are no guarantees, the key to AT&T's success will be effectively marketing -- but not overhyping -- IPTV, QoS, content partnerships, and seamless integration within the product bundle and within the digital home. In the end, the customer will be the winner as IPTV providers and cable operators battle for market share and improve applications and services to win subscribers and reduce churn.

More important to American consumers, the additional competition should help to drive down the cost of expensive U.S. pay-TV services that are currently priced at between two- to six-times the cost of equivalent services within the leading Asia-Pacific and European pay-TV markets.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without