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European Telecom Operators Look to Internet Protocol Television (IPTV) to Offset Declining Traditional Revenues
[March 21, 2006]

European Telecom Operators Look to Internet Protocol Television (IPTV) to Offset Declining Traditional Revenues


LONDON, March 21 /PRNewswire/ -- With the ongoing deregulation of the European telecommunications market and the subsequent entry of alternate service providers, incumbent telecom operators are witnessing a sharp decline in revenues from traditional business streams. Technologies such as voice over Internet Protocol (VoIP) and broadband over cable modem are further contributing to this trend and to offset this decline as well as to reverse the downward trend in their customer base, telecom operators are beginning to focus on delivering bundled services that provide higher revenues and growth. IPTV is one such service, which while complementing the bundle, also provides telecom operators with a defence strategy against the entry of cable operators in the telephony business.


Typical service enhancements enabled by IPTV will include on-screen programming information, time shifting features, and multiple camera angles. The technology is able to provide these distinctive enhancements due to the two-way communication capability of the broadband connection and the point-to point distribution. While the two-way communication capability allows for true interactivity between subscribers and the network, point-to-point connectivity makes possible for each viewer to watch individual broadcasting such as video on demand.
"However, IPTV involves not only network upgrades, but also securing premium content for distribution, resolving operational, billing and management integration issues as well as providing a satisfactory user interface, among other concerns," notes (http://it.frost.com/) ICT Senior Industry Analyst Fernando Elizalde. "All these represent significant challenges to telecom operators entering an unfamiliar territory, such as the distribution of entertainment content."
Notably, market participants consider premium content in the distribution business the most important element in the delivery of television over digital subscriber line (DSL). Service providers will have to invest considerable time and effort in procuring content as well as exclusive sports material from major studios and producers. This is all very important in order to launch their services and differentiate them from those of cable operators.
Also, service providers need to understand that despite the high expectations from the offering, IPTV may not be an immediate success throughout Europe. The success of this offering will be different in each country, depending on specific country and regional characteristics. Factors such as current pay-TV penetration and availability, viewer preferences and regionalisation, among others are likely to strongly impact service uptake in each country.
Nevertheless, IPTV is likely to establish itself as a valid alternative to cable and satellite TV over time. Also, its acceptance is likely to be more pronounced once communication services - be it voice, instant messaging or unified messaging - are fully integrated to the service. With all the elements in their right place, IPTV might very well be the service to push broadband beyond PC penetration and Internet access, thus helping operators nearing saturation levels in broadband penetration reach a wider market.
"Incumbent telecom operators began rolling out triple-play services at the end of 2004 and at the beginning of 2005, with France Telecom, Telefónica of Spain, Telecom Iceland and TeliaSonera in Sweden being the first ones to deploy commercial television over broadband," says Mr. Elizalde. "Telecom operators launching IPTV can make it a success if they deliver a service that is truly differentiated from that of cable operators, not only in content but also in applications, customer service and overall user experience."
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Strategic Analysis of IPTV In Europe: Telecom Operators Strategies, then send an email to Srividhya Parthasarathy, Corporate Communications at [email protected] with your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you by e-mail.
Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/.
Media Contacts:

Europe:
Srividhya Parthasarathy
Corporate Communications
P: +91-(044)-52044668
E: [email protected]


Americas:
Mireya Castilla
Corporate Communications
P: +1-210-247-3830
F: +1-210-348-1003
E: [email protected]

India:
Abha Kaul
Corporate Communications
P: +91-(0)129-2510311
E: [email protected]

Asia Pacific
Sarah Lourdes
Corporate Communications
P: +603-6204 5878
E: [email protected]

Australia:
Sharmin Jassal
Corporate Communications
P: +61-2-8247-8900
F: +61-2-9252-8066
E: [email protected]

Keywords in this release: internet protocol television, IPTV, Europe, telecom operators, voice over Internet Protocol, VoIP, cable over modem, digital subscriber line, DSL, research, information, market, trends, technology, service, forecast, market share
The following is a list of key industry participants: Alcatel, Belgacom, BT, Cablecom Hmb, Deustche Telekom, FASTWEB, France Telecom, Iderto Access, Jazztel, Kassena, KPN, Neuf Telecom, Nortel, Siemens, Swisscom, Tele Danmark, Telecom Italia, Telefonica de Espana, Telekom Austria, TeliaSonera
Frost & Sullivan

CONTACT: Media Contacts: Europe: Srividhya Parthasarathy, CorporateCommunications, P: +91-(044)-52044668,E: [email protected]. Americas:Mireya Castilla, Corporate Communications, P: +1-210-247-3830, F:+1-210-348-1003, E: [email protected]. India: Abha Kaul, CorporateCommunications, P: +91-(0)129-2510311, E: [email protected]. Asia Pacific:Sarah Lourdes, Corporate Communications, P: +603-6204 5878, E:[email protected]. Australia: Sharmin Jassal, Corporate Communications,P: +61-2-8247-8900, F: +61-2-9252-8066, E: [email protected]

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