Rise of TelcoTV


With more telcos expected to add digital TV to their services, and equipment suppliers reporting increased activity, In-Stat/MDR expects over 100% growth in telco TV subscribers in 2004. The delivery of digital TV service over high speed networks is now a reality, especially in Asia and Europe where a number of new players have started offering these services. Yahoo Broadband in Japan is one such example. The popularity of TelcoTV is increased because of improvements in the data rates and reach of DSL, and advances in video compression.

bq. “Competitive threats and fixed line revenue pressures are encouraging telcos to become active in offering digital TV to their subscribers. The possibility of gaining an additional $60 per month in revenue, while becoming less likely to lose $30 a month to your competition, is an important factor in the business case,” says Michelle Abraham, a Senior Analyst with In-Stat/MDR.

I think this Telco TV is going to be a marginal player in the US, at least over next five years. Elsewhere, however, because of lack of real cable networks is going to help accelerate the adoption of TelcoTV.

bq. In 2005, advanced video compression will allow telcos to reach more homes in their territory or expand the number of video streams delivered. The delivery of high definition streams over DSL will be much easier, as each stream will only need about 8 Mbps rather than 15.

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