Skip to main content

Can IPTV Fill the Revenue Loss at Telcos?

Infonetics Research reports that a growing number of North American, European, and Asia Pacific service providers are betting on IPTV and video services to stay ahead of their competition.

The report says the loss of revenue associated with fixed-line telephony services to cable operators and other competitors, along with the threats to revenue posed by over-the top Internet content providers (ICPs), are forcing service providers to move into the TV business to increase ARPU, reduce churn, and expand their brands beyond the staid, monolithic telephone company.

Further fueling the drive to IPTV and video is the fact that service providers now have many more access options over which to deliver high bandwidth, high revenue IPTV and video services to subscribers, including expensive access technologies that are now available at comparable prices from multiple manufacturers -- including DSL, PON, Ethernet FTTH (active Ethernet), cable HFC, and WiMAX.

IPTV is the application many service providers feel offers them the best opportunity to stem the loss of revenue from declining fixed access lines, and help them to more quickly recoup revenue from their ongoing fiber deployments. Yet, there are significant hurdles faced by IPTV and video providers, and chief among them is interoperability.

Various standards organizations are developing IPTV standards but all are in various stages of completion and adoption. Until the majority of vendors agree to rally around a particular group of standards, interoperability will remain a critical problem for would-be IPTV providers," said Jeff Heynen, directing analyst for IPTV and next generation OSS and BSS at Infonetics Research.

In contrast, I believe that the greatest challenge is the lack of pay-TV service differentiation. IPTV's current value proposition is essentially a decade or so late to market -- when linear programming delivery modalities were still in vogue.

Other insights from the Infonetics study include:

- The number-one technical challenge IPTV and IP video service providers face is interoperability between products.

- Implementing interactive video features is the second highest rated technical challenge, as providers move away from their legacy linear model and adopt interactive advertising, online gaming, as differentiators.

- The percent of service providers offering interactive advertising grows from 20 percent now to 70 percent in 2009.

- Ensuring QoE remains the most critical aspect to any operator's IPTV service because they absolutely must have a unique and differentiated service right out of the gate. That said, most don't.

- Approximately 30 percent of respondents use a hybrid solution, combining digital terrestrial (DTT) or satellite delivery of broadcast programming and multicast delivery of premium and VOD content.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of