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March 23, 2006


How big a gamble are phone carriers taking with television? It depends who you ask. American carriers have lost more than 5 million telephone customers to cable rivals Time Warner, Comcast and Cox during the last year as cable firms move into the VoIP marketplace, says America's Network.

Yesterday's announcment by Microsoft and DT to bring IP-TV to Germany's telephone users, highlights the seriousness of phone carriers to offer television.

Deutsche Telekom's IPTV will go live in ten major German cities - including Berlin, Hamburg, Cologne and Munich - later this year. DT plans to bring it to 50 German cities by the end of next year.

Microsoft says 13 broadband service providers will use its IPTV Edition software. They include Telecom Italia, T-Online France, British Telecommunications, Swisscom and Verizon. BellSouth, Bell Canada and Reliance Infocomm are still testing the software, reports C/Net.

Siemens executives said in December the global market for IPTV could hit $1 billion by 2009, with China expected to account for a quarter of the spending.

BT Vision is launching IPTV service this year in the UK. The service gives viewers access to on-demand films, music, and TV shows by combining access to digital-terrestrial channels through the aerial with VoD provided by broadband. The Philips set-top box uses Microsoft software. Trials are due to begin shortly.

IPTV is big in the far East, reports Converged Digest. In Hong Kong, PCCW's NOW Broadband TV has more than 500,000 IPTV subscribers (pdf). Over 13 million DSL subscribers in Japan will soon get IPTV services through Softbank/YahooBB and NTT. Korea, with the world's highest broadband penetration, plans to launch IPTV via Korea Telecom and Hanaro Telecom.

Japan's NTT and Korea's KT plan to offer 30 million and 10 million (respectively) FTTH subs by decade's end. UT Starcom signed a contract last month with China Telecom to begin IPTV services in two Chinese cities, Fuzhou and Quanzhou.

In the US, Verizon's FiOS is utilizing a "hybrid system" for video that uses 860-Mhz cable tv technology to deliver broadband video to the home. Verizon, which bought MCI in January, plans to spend an estimated $22 billion on its Fios rollout.

AT&T, on the other hand, is using Microsoft's IP-TV settop box and twisted pair with VDSL modulation to deliver 10-20 Mbps. AT&T/SBC liked the lower cost (using a consumer's current twisted pair) and by the ability to offer highly interactive features compared to cable.

Project Lightspeed, which began in San Antonio this January, initially is offering 200 channels, but promises as many as 1,000 when it expands the service to other markets by June.

By the end of 2007, ATT/SBC expects to reach 17 million households with FTTN and nearly 1 million with FTTP. In 2005, SBC said it expected that its total capital expenditures will be at the high end of its 2004 guidance range of $5 billion to $5.5 billion. AT&T, with BellSouth, will have 70 million landline subscribers.


Research firm Parks Associates (above) estimates 70 million users around the world will embrace IPTV by 2010, up from 5 million last year. The IPTV market is expected to grow as much as 25% annually. Infonetics Research says there will be 13 million IPTV users in North America by 2009.

The new on-demand IPTV paradigm has profound consequences for the old media ecosystem – traditional TV channels, previously key for ‘branding’, are in danger of losing their influence, says Converged Digest. The $60 billion spent on U.S. television advertising, annually could get re-directed, opines Bob Garfield (MP-3).

Americas Network has a good overview. Telephony Magazine has complete coverage of TelecomNext while IPTV News and Google News have the latest poop on IP.

Related DailyWireless stories include; IPTV: Is It Soup Yet?, IPTV Networking, Telco's Left Behind in IPTV Armageddon?, Cuban: Broadcasting Not Dead, Wireless IP-TV Box, IP-TV End Game, Cisco Buying Scientific Atlanta, SBC Picks IP-TV Settops, GoogleNet?, The Free Triple Play, VDSL-2 Ratified, IPTV: Is It Soup Yet?, IP-TV Settops, Legislators: Don't Mess With SBC, DirecTV + WiMax?, Muni Wireless Laws, and Duopoly Laws.


Originally posted by sam from Daily Wireless, remediated by yatta on Mar 23, 2006 at 09:12 AM