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Few Telcos Launch Interactive IPTV Service

Offered either on a stand-alone basis or bundled with other telecom products, IPTV services are experiencing noteworthy expansion across developed and emerging markets, according to the latest market assessment by Pyramid Research.

IPTV subscriptions doubled in number over the past 12 months and will continue to post double-digit growth over the next four years as they are rolled out in markets around the world. In numbers, the results are as follows:

- There were approximately 15 million IPTV subscribers at year-end 2007.

- Using a bottom-up regional analysis and forecasts, the global IPTV market in 2011 will be more than 72.6 million subscribers.

But all is not equal even among IPTV offerings. Currently, IPTV services do not evolve in a linear manner from basic to highly sophisticated products. Some telcos launch highly interactive IPTV services with a wide content portfolio from day one, while others go to market with a basic VoD-only approach.

By considering market conditions and their own broadband objectives, telcos define and revise components of their IPTV strategies on a regular basis.

The shape and form of IPTV packages are determined largely by competitive dynamics in both the broadband and pay-TV markets. Although regulatory frameworks have played a role in limiting the extent of individual IPTV portfolios, it is the positioning and pricing strategies employed by each telco that determine the pace of IPTV development, regardless of the level of development of the market as a whole.

In their report, Pyramid Research analyzes 10 different markets for further insight into telco IPTV strategies. In each of these 10 markets, one or more service providers have rolled out an IPTV service or are planning to do so in the near future.

These country profiles include analysis of developed IPTV markets, such as South Korea, France and the U.S., juxtaposed against the IPTV activities in emerging markets, such as South Africa, China and Brazil.

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