IPTV: Telecom operators difficult choice

Why carriers doing IPTV, regardless of whether they need to launch IPTV? because in most markets, they have no choice.

Global Telecom and broadband companies have mad plunge into IPTV bandwagon. InfoneticsResearch latest analysis shows that the company's goal is to build systems 2009 in 260 billion in investment to get part of the business income, the income will be worth $ 380.

In the current bet IPTV trial, telecom companies are trying to be small and small networks become capable of making big things, although this may be a new seeds, but it makes content distribution companies in the technology and business challenges facing terrible frontiers. At the same time, the inhabitants of the television market in Excel — Free-to-air (free radio channels), cable carriers and DBS companies — and no am not happy because telecommunications industry began to guarantee their access to income. But the strange thing is that many carriers is likely not want to start their journey of IPTV, and they do it just because they have no choice.

The world at their feet?

If not, with the inevitable impact of IPTV in various forms, from Italy to Iceland, from Canada to China, affecting global advanced telecommunications and broadband services provider in management thinking. Many companies have begun to enter the IPTV and on their own investment eulogizing. One example is the Belgacom company that represents in the 12 months already attract a 5 million users. "For remote audiences, is a true revolution BelgacomTV. "BelgacomTV Manager Jean-CharlesDe Keyser declared that" with today's TV, you can at the right price watch whatever you want to see, but in the past, television has developed a program schedule. In addition, Belgacom TV than its competitors offer more channels, allowing customers to view their custom of films and programmes. Customers will still be able to watch television as before, but also to make a selection, arrangement of ' their own ' TV show. ”

Hong Kong City Telecom (CityTelecom) through its Ethernet broadband Unit published the IPTV service, but Hong Kong broadband company (HongKongBroadband Network) in August 2003, the publication of the service. City Telecom's Chairman and founder of Ricky Wong in the Shanghai IPTV World Forum Asia meeting said that the competitive pressure is forcing it into the IPTV sector. "To offer IPTV is because we have no choice. "Wong said:" in the old telephone company launched the service PCCW, and competitive phone company Hutchison Telecommunications (Hutchison Global Communications) has also launched this business, so I had to give my customers claiming to be a serious, long-term carriers. If this is not the case, then I won't bother to IPTV. ”

Wong told yet investment IPTV service providers: "IPTV is a very difficult business. You must have content, but the content is very complex and expensive, and also depends on you and the relationship between the content provider. "That is, not belittle Wong IPTV follow cable TV mode that belittle IPTV itself. Wong said, and provide a package of TV channels, he would prefer to wait and to offer IPTV services, the service as a comprehensive body of generated content. He said: "IPTV should be a center that connects all around your device, regardless of the device is an iPod, is an Xbox game, or a 3G phone. Carriers can serve as a connection to all of these things in one of the gateways. ”

Ironically, even the leader also considers IPTV, IPTV should not be a substitute for wireline. PCCW had begun the journey, the VAS NOWBroadbandTV is so far the most successful IPTV service. "Long before we realized that IPTV is a cable-competitive play, VAS so we offer an interactive business, cross-media platform and other Hong Kong cable operators provide i-Cable cannot service type. "PCCW competent leadership of strategic market development PaulBerriman said.

Although other IPTV's investment company also failed to have a good development, but Infonetics anticipates that by 2009 the number of global IPTV users will surge to 53 million. But for IPTV user number expected, the industry's other voices to care. For example, DiffuusionGroup 2010 global number of users is about 34 million, so it's short-term interests of the service is not very optimistic. According to this idea, Accenture and economists think tank, one of the conclusions is that very few companies are expected to soon IPTV it bottom line impact of substantive, on the contrary, most companies have seen the growth of IPTV on top line of the greater influence. Network operators also anticipates that IPTV will facilitate broadband access in the take-off, and contribute to the stability of the user.

Note the number of users and IPTV Sara associated profits also is valuable. In Western Europe in a survey, Gartner estimates that in 2006, the family of an application by telecommunications operators to provide the number of new IPTV will reach 330 million by 2010 this figure will rise to 1670 million. Despite good growth, but Gartner says that in the next five years, IPTV will work to fight against to become the main telecommunication operators revenue opportunities.

Bundled services fun

Despite the uncertainties, but some of the assumptions of operators, in particular the

Some operators in great, if you want to halt the decline of the traditional income, stability and increase the attractiveness of the market, which have no choice but to fight with the difficulties of IPTV.

As the Detecon consulting company's main network architect, Dr. PatrickPfeffer pointed out: "many of the world's largest telecommunications companies every day to lose thousands of customers. IPTV service providers need to be thought of as part of bundled services. This bundled services will help carriers restrain POTS line losses. Dr. Pfeffer ", in the United States believed that IPTV is the RBOC and MSO services better competition; in Europe, it is able to fight from LLU new entrants challenge. But in these two places, real IPTV business case is not caused any arguments. "IPTV will enable operators to increase their ARPU. But if you only consider this point, you may not do so. "He argues that," I did a lot of business development, but will it and business case coordination difficult. However you should point to the opposite, and issue the question: if I do not do so, then what could happen? "

Interestingly, when some big telecom companies facing IPTV "or not" scene, a white paper issued by the Detecon pointed out that, in many successful IPTV global deployment, mostly of small and medium-sized carriers deploy.

Some of the necessary parts

Basically, a telecommunications network (especially access network) and end users of ownership relations (though this is shrinking) is a telecommunications company in the hands of two Trump, its missing part is the media infrastructure (including front-end devices, video subscription system, DRM capabilities and video servers, etc.) and the home network (including gateways, set-top boxes and one or more network solutions).

From experience, some existing carrier network infrastructure may not apply to IPTV. Pfeffer, observed that some SDH/Sonet/ATM network users too much, and you need to turn the Ethernet. He also expressed the view mode from broadcasting to customization changes in the future will give the man some big problems. "Today the carrier on the IPTV network design and implementation is dependent on the adoption of the broadcasting mode on customization sent many video. "He said.

In the access network, ADSL2 + is an entry-level minimum, VDSL2 is currently also being deployed. When the delivery of content is high-definition IPTV, all of which is still useful to become pending. "ADSL2 + and VDSL2, the laboratory data looks very good, but in the real world, as the temperature, you cannot know whether something normal, twisted-pair will soon begin to fail. Dr. Pfeffer ".

Carrier always envisaged have enough deep pockets ("deep pockets" theory, which has the ability to repay), have to assume the responsibility of the Management Board, a sympathetic shareholders, it may consider running fiber to the home or fiber to the building (FTTH/B) to make up for the copper-based IPTV bandwidth of weaknesses. There are two basic choices: Europe some municipal and public utility service providers like Active Ethernet, and the world a large telecommunications company to take a passive optical network (PON) strategy.

Unfortunately, PON method does not guarantee that things simple. PON "flavor" (they are not mutually excluded) in several ways. Current broadband PON (BPON), GigabitPON (GPON), EthernetPON (NGEPON), WDM PON (WDMPON) and issues such as the next generation of optical access network (NGEPON) has its own strengths and weaknesses, also has its advocates and opponents. However, whether it be FTTH/PON which, in many carriers of capital expenditures. Even for those who considered the issue of the company, improving access capacity is not always in a priority position.

"Service providers want to get from IPTV great rewards, and they return in order to guarantee this is vigorously investment to IPTV. "Infonetics Research Institute of IPTV analyst JeffHeynen said:" at present, the service provider will focus on transport infrastructure, they are on their access networks to upgrade to a higher bandwidth ADSL2 +, VDSL2 and FTTH platform. They also increased the IP edge router, Ethernet routers and switches to tackle IPTV users is expected to rise in the number of traffic requirements. But in the next four years, their investment will shift to content infrastructure, so they will be in areas such as custom video server, decoder, content security platform and front-end equipment spend more. ”

Family facts

Of course, did not develop IPTV carriers have to IPTV transmission chain end construction and operation of media infrastructure, and in the other end of the business involved in home network. According to the Detecon opinion, a front-end possibility is to use from the provider (for example MinervaNetworks, OrcaInteractive and Kassena) of best medium wave, various subsystems together, this change is Microsoft's vertical integration services. Dr. Pfeffer, however, believe that software here may become too complex. He and colleagues are urging carriers to exert pressure on the provider to have a simpler architecture and open interfaces.

As home networking experts RuckusWireless is responsible for the Europe, Middle East and Africa technical department director ScottReeves pointed out, the family network was initially to be a problem in IPTV simply because DSL or optical connections in content consumption side can

Be unable to enter the home.

There are many home network technologies (such as coaxial cables, power line, telephone line, Ethernet, Wi-Fi, future IEEE802.11n and UWB) is not the same in all parts of the world, in different areas of home design, construction and equipment of the existence of a large number of different, each technology has its limitations and strengths. In addition, these solutions are not mutually exclusive. When the technical requirements and user expectations on the contrary, IPTV home network environment has become a tricky problem. Said Dr Pfeffer, most disturbing was the set-top box. "Device like a value of $ machine does, but the price is lower than US $ 120, it does have some difficulty. "He boldly said," all in IPTV testing and deployment, and feedback from users of the survey show that the set-top box or noise is too large, or overheat or frequent start. In the operator's side, set-top box for each new task with the previous year. ”

Reeve said that family networks service is prepared not as good as slam dunk. He mentioned that the rejection of the traditional line installed is about 20%. At the same time, the automation software company responsible for the strategic plan of the Executive Vice President SanjayCastelino reported that a United States carrier IPTV per number of a user, about 1500 dollars spent. "We noticed some early IPTV providers to families to send technical personnel, technical personnel and one day may only be a family of installation work. "He said," If you calculate them a year to the number of cases of installation work done, you know that this capacity is very limited. Many companies may think, as part of an early experiment, this cost is still available, but most companies are seeking new ways to IPTV can they wish to connect and play stations installed automatically. ”

Despite some problems, but the carrier participation to Castelino IPTV home network arena as a new revenue source for the main opportunities. "Family device remote management capabilities open up an opportunity for the Kingdom. "He said," you can start the network access storage contemplated in the family came up. You can start introducing other devices in the home, whether it is for the sake of family health services or management services. You start to really make the infrastructure in place to manage all with IPTV services. My hope is that carriers can they are investing in infrastructure and technology as cannot be used for multiple service actually infrastructure and technology, and not only to support IPTV. ”

Behind the family IPTV may have new opportunities, but why the carriers involved in internal deployment of the network, there may be a more pragmatic reasons. "They have to," concludes, Reeve, "if they want to sell more than bandwidth, so I'm afraid of what they would have to be entered for the bandwidth and the video starts playing screen it between two points to happenings to assume responsibility. ”