Internet Protocol Television (IPTV) is expected to change the way people watch TV. As the name suggests, IPTV is television programs delivered to subscribers through the Internet. What is surprising is that, more than the cable, satellite or the TV broadcast companies it is the telecommunication companies that are taking more interest in this new technology. In India also all the major telcos are eyeing IPTV.

The reason is obvious - IPTV rides on the Internet, and telcos are the main service provider for Internet across the world. For the telcos, venturing in to IPTV business would mean a different ball game all together. They are looking at providing their Internet subscriber with value-adds. Considering the limitless capabilities of Internet, IPTV can be used to deliver more content as well as a more personalized viewing experience.

The first question that comes to everyone's mind is: Will this concept work on the Internet? Korea has been delivering IPTV for sometime. The BBC just announced that they would offer their program over the Internet for downloading. Many homes in Europe, US and Asia are also experiencing IPTV provided by their cable companies and Internet service provider. Despite all this initiation, IPTV is yet to revolutionize the TV broadcast industry.

How it works?
Like every other technology, IPTV is also going through its teething phase. The priority for IPTV is to provide the basic service quality - in terms of picture and sound - that viewers have come to expect from other platforms.

Microsoft is one of the many companies developing solutions to support the Internet Protocol TV (IPTV) market. Through the above diagram, the vendor demonstrates the innovative and flexible approach to the need of this segment. By providing both a full solution and individually selectable technologies, the operator will have the choice to address its needs in the most appropriate way. The diagram depicts a typical IPTV system from the central office/head end to the home. (Source: Microsoft)

A reliable IPTV connection should provide consistent picture quality, ensure a strong video signal, deliver fast service response, provide dependable network access, and avoid interference with other services in the home. And these are slowly being addressed. In a couple of years, we can hope to have trouble-free delivery of IPTV.

IPTV works on a broadband Internet connection. Providing data, voice and video requires a large bandwidth. A true
triple-play service will require bandwidth in the range of 24-30 Mbps downstream. Faster DSL technology, such as VDSL
or ADSL2+, will provide this capacity.

IPTV uses the switched digital video architecture, enabling users to customize their viewing by removing the restrictions of a channel-based surfing. Instead of surfing through hundreds of channels, subscribers can watch the TV show or movie they want, when they want it.

In addition, IPTV can allow other features such as multi-picture view, enhanced search and programming capabilities or blended services (Eg. phone and television interaction). It also provides digital video recorder (DVR) capabilities - either locally and potentially in the network.

Market opportunity
Broadband access has changed the way consumers work, learn and play. And triple play services like IPTV with enhance this experience. According to a study conducted by Informa, IPTV adoption is expected to grow to 25.9 million subscribers globally by 2010. This will generate about $10 billion in revenue.

The driving force behind IPTV is the telecom sector's need to move away from 'plain old telephony services' (POTS) - an area which is becoming less profitable. Additionally, telcos are looking at giving additional value to their customers. In the United States, telcos like Verizon, SBC and BellSouth are spending billions to enable their networks for IPTV.

There is a big opportunity for both DSL and cable service providers. They are the best equipped with infrastructure to build large network and manage distribution of services.

Threats to existing services
While telcos pour in money, they are also building a major competition with the traditional cable, satellite and broadcast companies. However, they can only have the competitive edge if they meet or exceed customer expectations. These expectations start from the point of installation to providing support and ensuring quality of service. At the back-end, there are other complexities like building reliable network and managing the whole thing.

The success of IPTV will also depend on the profitability operating these triple-play services. According to industry experts, IPTV providers will find it difficult to compete with the cable and satellite operator unless they reach subscriber base of millions of users. Therefore, it becomes important that IPTV providers should try more sophisticated offerings only once the basic expectations of the customers are met.

Later, to gain market share, telcos need to offer competitive products. This can include more selection or control over the channels received, better audio and video quality, plus more of complementary features. For example, caller-ID on the television screen (with an option to pause TV program and answer the call or forward to voice mail); management of users' personal media, such as photos, home videos and music; home security camera feeds on television; remote programming of a DVR from a telephone or Web browser; and so on.

Role of service
The complexity of IPTV makes it much more difficult to support. Customer service is critical, especially to facilitate early adoption and long-term loyalty. IPTV services require CPE (Customer Premise Equipment), typically either a decoder or set-top box. Connecting these devices into the service network is something most consumers can do, but making sure everything is working together and at expected service levels requires additional testing and measurements.

To further complicate the service model, operators will have to deal with regular monitoring of firmware updates on the CPEs, to support additional features or improved quality of service.

Telcos are not expected to introduce all features and capabilities at the beginning, so it is essential that telcos have the ability to update customer premise equipment to enable to new services, as well as upgrade or repair existing ones.

IPTV service from a telecommunication company would mean an entire new workforce of qualified engineers to service the network. All said, venturing in to IPTV might not look as easy as it may appear to be. For the telcos, it is like getting in to show business and for the satellite companies it is like getting in to telecommunication business.

NELSON JOHNY

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