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U.S. Telcos Attempt to Reduce their IPTV Cost

While most consumers that install a broadband home network themselves choose Wi-Fi, for all the obvious reasons, telcos are still searching for long-term solutions that would enable them to reduce the complexity and cost of the current 4-hour typical IPTV service installation process.

New developments in Home Phoneline Networking (HomePNA) technology will give the market a boost, and help it become a viable player in deployment of home video networks, reports In-Stat. Migration is underway from the lower-speed HomePNA 2 to HomePNA 3, and worldwide shipments for HomePNA 3 will exceed 200 percent growth in 2007.

"In the near term, we see this technology primarily competing in the North American market, with pockets of opportunity evolving internationally. Some service providers fully expect to use multiple technologies and mediums that will co-exist in their in-home deployments, as long as they meet the operators' service quality and cost objectives. The difficulty comes in measuring the penetration rates as one must separate the hype from reality," says Joyce Putscher, In-Stat analyst. "As a result, we drove our forecast using a "quad-vector" approach utilizing our annual consumer survey research, along with realistic expectations by semiconductor vendors, equipment vendors and service providers."

In-Stat's study found the following:

- The underlying drivers for residential entertainment video distribution networking are the whole-home DVR and efforts to avoid installing new cabling.

- The number of whole-home DVR installations is expected to grow at a Compound Annual Growth Rate (CAGR) of over 100 percent from 2006 to 2008.

- Most service operators are keeping their options open, and optimally want their services to run over at least two mediums -- powerline and coax, or phoneline and coax.

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