Skip to main content

Net Operators will Limit Over the Top Video Growth

The AT&T recent decision to implement broadband data caps and charge extra fees for heavy data usage on wireless devices poses grave implications for over-the-top (OTT) video service providers, according to the latest market study by iSuppli Corp.

By discontinuing its unlimited access plan, AT&T is now seeking to limit data usage of smart phones. The data caps will make it difficult for any high-quality video streaming application -- without the permission and support of wireless operators.

"iSuppli believes that most of the emerging streaming Internet models are mistaken in postulating that they could displace, over time, traditional television and movie delivery mechanisms without paying for related network costs," said William Kidd, director and principal analyst for financial services at iSuppli.

Meanwhile, new broadband subscribers worldwide are projected to rise in 2010 by 63.5 million -- up 8.4 percent compared to total net additional subscribers of 58.5 million in 2009.

At present, video content can be freely streamed to a TV from online service offerings such as Hulu and Netflix, or accessed through a device such as the PlayStation from Sony Corp.

Kidd said that data caps will become relevant if any user viewed low-quality streaming media -- say, a 200-kbps stream -- on a wireless device for three hours, or if a standard-definition TV signal on a wired network was streamed for approximately 25 hours.

By the same token, streaming a high-definition TV signal could put a user over the data cap in just 7 hours on the wired network of Comcast Corp. -- the largest U.S. cable operator and Internet service provider for the home.

Kidd observed, in order for consumers to consider the Internet as a true substitute for their pay-TV service, content would need to be comparable in both technical quality and entertainment value. Apparently, some broadband service providers may attempt to ensure that this will not be possible, thereby limiting the growth of OTT services.

"By implementing caps now that don't impinge on the way subscribers use the Internet today, cable and telco operators are able to create for themselves an advantageous situation," Kidd said. "Under these circumstances, emerging media competitors must work more directly with the network owners before getting their services off the ground -- as opposed to around them, as they may have previously hoped."

However, does this "operator gatekeeper" scenario add credence to the FCC's previously stated net neutrality concerns? Also, will other parts of government, such as the U.S. Department of Justice, consider these methods as a "restraint of trade" practice -- essentially in violation of American law? We'll have to wait and see.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Contact Center as a Service Gains AI Benefits

Enterprise leaders with large customer care organizations are exploring Artificial Intelligence (AI) applications to improve their online customer experience, increase operational efficiency, and reduce costs to improve profitability. Trained AI can be used to automate tasks, such as answering routine questions, freeing up contact center agents to focus on more complex inquiries. AI can also be applied to personalize the customer experience by recommending new offerings. Additionally, AI can be deployed to analyze vast amounts of existing customer data to identify support trends and patterns, which can be used to improve the overall customer experience. Customer Care AI Market Development Worldwide Contact Center (CC) and Conversational AI, including virtual assistant end-user spending is projected to total $18.6 billion in 2023 -- that's an increase of 16.2 percent from 2022, according to the latest market study by Gartner. "Near-term investment growth rates for CC and CC Con