Skip to main content

Lifecycle OPEX Cost for IPTV Customer Care

According to the Yankee Group, the managed IPTV services offered by telecom providers have been a primary investment focus during the last two years. IPTV services in Asia, Europe and North America have begun to take form in early field trials and commercial deployments.

Only recently have the operational costs associated with these deployments come into focus. Service providers are spending billions to upgrade their networks to add IPTV applications in the home.

Because the capital and operational investments to upgrade the network are so high, service providers need to keep their support costs as low as possible. However, installation and support costs are still very high, and service providers are looking for options that will decrease these costs in both the short and long term.

Yankee Group analyzed the operational costs associated with IPTV deployments as part of a series of research initiatives examining service provider's approaches to deploying broadband and associated IP services. Although the costs vary significantly according to geography and type of IPTV deployment, they determined that the average cost to install an IPTV customer is 287.00 euros ($371) per subscriber.

This figure does not include short-term support (i.e., for the first 30 days), which is an additional 60.30 euros ($77.96) per subscriber. Ongoing support costs about 22.70 euros ($29.35) per month, per subscriber, which brings the total for IPTV support in the first year to 584.00 euros ($755.00) per subscriber.

These figures do not include any capital costs, and the installation figures are based solely on 'truck roll' costs. Installation, long-term support and short-term support account for 49.1 percent, 42.7 percent and 8.2 percent of total costs, respectively.

I recall that an early study of installations within the U.S. market, using Verizon and AT&T data, showed that the average IPTV install took at least four hours to complete -- even with multiple field technicians involved. It now appears that the average time per install may have declined. Regardless, the install and support investment in each subscriber is still relatively high.

Popular posts from this blog

Security IP Market: The Platform Era Arrives

For years, security intellectual property (IP) existed in the semiconductor world as something of an afterthought; bolted on at the tail end of chip design cycles and treated as a compliance checkbox. That era is decisively over. According to the latest market study by ABI Research, the Security IP sector is entering a sharply accelerated growth phase, driven by a shift in how OEMs think about trust, compliance, and embedded protection. The message from the market is unambiguous: integrated, certification-ready security is no longer optional infrastructure; it is a competitive imperative. The explosion of connected devices across industrial, automotive, consumer, and data center environments has expanded attack surfaces. Security IP Market Development Meanwhile, regulatory frameworks worldwide are tightening, demanding demonstrable security assurance rather than self-attested claims. And looming on the horizon is the quantum computing threat, which is already forcing forward-thinking c...