Abstract
As US incumbents fixed-line revenues continue to erode through aggressive price competition, wireless substitution and take-up of alternative technologies (such as cable telephony), telcos see IPTV-based triple play as the chance to regain a dominant place in the market. However, telcos need to understand not only the opportunities, but also the uncertainties associated with IPTV.
IPTV: a breakthrough for US telcos? explores the technology, business, market and regulatory realities behind IPTV to evaluate whether its impact on telcos and other service providers, especially cablecos, justifies the current industry hype. The report examines the key factors affecting the business case for IPTV, compares various models and strategies for IPTV deployment and sets out a range of scenarios and outcomes for the development of IPTV in the US market.
The report answers a number of key questions:
- What are the technology choices, infrastructure options and delivery modes for IPTV?
- What are the potential benefits of, and roadblocks to, IPTV-based triple play?
- Does IPTV offer real opportunities for achieving service differentiation and competitive advantage?
- Will IPTV help re-establish US incumbent telcos dominance in fixed networks?
- What will the current big players in the industry need to do to respond to IPTV?
Table of Contents
- 1 US telcos see IPTV as a key response to competitive pressures
- 1.1 Competitive pressures and IP technology are renewing telcos interest in video
- 1.2 Competition and market changes are squeezing incumbents revenues
- 1.3 Incumbents see IPTV and triple play as a key response
- 1.4 IPTV triple play has strengths -- but faces uncertainties
- 2 IPTV technologies and deployment are still at an early stage
- 2.1 Telcos can choose from several IPTV-delivery modes and service types
- 2.2 There are divergent infrastructure options
- 2.3 Major players are making a variety of early deployments
- 3 Telcos need strong IPTV business cases to lead in triple play
- 3.1 The basic case for telco video is strong
- 3.2 Potential roadblocks could affect the telco IPTV business case
- 4 Advertising and interactivity are key IPTV opportunities
- 4.1 Conventional TV advertising is in long-term decline
- 4.2 IPTV offers significant interactive capabilities
- 4.3 IPTV could replicate the benefits of Internet advertising
- 4.4 IPTV matches advertising trends
- 4.5 Interactive TV is already being used
- 4.6 Interactive TV is easier for telcos than cable operators
- 4.7 The quality of interactivity will be crucial
- 5 Telcos must plan for diverse outcomes
- 5.1 Telcos face six main hurdles in regard to IPTV
- 5.2 Outcome 1: Telco IPTV becomes a niche product
- 5.3 Outcome 2: Telco IPTV becomes a cable equivalent
- 5.4 Outcome 3: Telco IPTV powers an interactive advantage
- 5.5 IPTV will affect all pay-TV players
Annex A: overview of cable TV
- A.1 Cable technology
- A.2 Cable services
- A.3 Regulatory issues
List of Figures and Tables
- Figure 2.1 TV and video delivery modes
- Figure 2.2 Fiber deployment options for telco IPTV
- Figure 2.3 DSL downstream capacity by length of copper loop
- Figure 5.1 Key hurdles and plausible outcomes for US telco IPTV
- Figure A.1 Cable and circuit-switched telecom architectures compared
- Table 2.1 Characteristics of chief forms of current DSL technology
- Table 2.2 Bell fiber and IPTV deployments
- Table 3.1 Breakdown of cable operators revenues, 2002--4
- Table A.1 Typical frequency allocations for services in 750MHz-bandwidth HFC cable network
