IPTV LANDSCAPE IN THE USA
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1 IPTV LANDSCAPE IN THE USA
2 STUDY OVERVIEW In this report, we illustrate the different solutions and the different business models of the major programmes currently available for the deployment of IPTV in the USA. An introduction, which provides a general analytical overview of the IPTV system, is also included. INTRODUCTION The battle for a spot in the sun in the USA is in full swing. Although cable operators and phone companies once were operating in two different, separated industries, the two industries are now competing head-on. Telecom operators are rolling out TV services; in some markets IP-based, in others with a competitive satellite-based traditional TV package. In the meantime, the cable industry, already successful with its broadband Internet services, is now rolling out phone services. Service packages are benchmarked with each other, in a fight over the customer. On the institutional side, CaTV carriers are lobbying so that telecom carriers be under the same legislation while telcos have been lobbying to pass federal and state legislation to expedite the licensing and relax some rules process, arguing that it would lead to even more price competition. Cable companies have been resisting these efforts, claiming that phone companies are seeking special privileges that cable operators don't get. If cable carriers might have a sort of first-mover advantage, how technology and innovation will evolve in the near future will be key to determine how forces will confront on the market place. Definitely, CaTV operators currently have, an advantage, rolling out their triple play services: they have an already established customer base to which they have been providing TV since a long time, and are successfully marketing video and on-demand entertainment, with Comcast arriving to announce that the success of its triple play service takeoff, which was fully unexpected. Telecom operators, on the other hand, although still deploying their fibre networks, which would allow IPTV available only in some spots in different markets are deploying bundles with nation-wide, satellite-based TV services, is order to built up a significant TV-customer base to be then upgraded to IPTV when the service is available in that area. Eventually, what else could telecom carriers do? TV is somehow the missing ingredient for the telecom companies, the same as VoIP is the missing key for cable operators. Somehow, ineluctability is, currently, the main driver to this strategic choice. The two industries are by now facing each other, and in this battle, time seems to be more critical every day. Already during 2006, both main telecom operators, AT&T and Verizon, announced plans to accelerate their fibre deployments. In the meantime, cable carriers had intensified their triple play marketing activities, and proved to be very successful. Cable operators argue they can leverage on the fact that they have been, traditionally, the entertainment providers. Telecom carriers leverage on their reputation, on their reliability, their ability to provide technology-intensive services, with adequate customer support, including installation on the customers premises and billing. As we illustrate, the battle is playing on all these issues.
3 QUESTIONS TO BE ANSWERED Which are the different solutions and the different business models of the major programmes currently available for the deployment of IPTV in the US? Which are the value-added services that have been implemented together the IPTV offer by the operators? Which are the new business models and which role does the technology plays on it? Will their traditional services be integrated? With which technological solution will they deliver IPTV? Does a long-term copper solution exists or do, carriers need to deploy networks based on FTTH instead? How are cable companies fighting back? How much will carriers be able to add onto their revenue streams? If triple play must cost less than the cost of the individual services and, furthermore, to achieve an adequate quality level, more investments are necessary, how will carriers make a profit? Has IPTV fulfilled its promises? Is its development and introduction in the telecom market happening as everyone expected? How will carriers come to this point? Which are the requirements, key-steps and procedures for the IPTV eco-system implementation? WHO SHOULD READ THIS REPORT? Incumbent operators Concise and fast IPTV market overview. Excellent benchmark tool to identify the commercial drivers and key players. Broadband operators Identify new opportunities and best practices for the improvement and/or development of their service/product strategy. Manufacturers and wholesale providers IPTV identification at the technological level: identification of future technological needs and limitations for the further IPTV service development. CATV operators Identification of potential threats and evaluation of possible alternatives to achieve their future targets. Broadcasters Identification of potential markets and evaluation of the impact of this technology in their present market and strategy (competition increment and product portfolio diversification). Regulators Evaluation of the procedures and implications of the IPTV services introduction in other markets and which has been the position of the different players also at the regulation level in this new sector. Investors and analysts Understand the implication of new services and technology in the company evolution and strategy. COUNTRY COVERAGE USA CARRIER COVERAGE Cable TV carriers, AT&T Inc., Bellsouth, Verizon and Qwest.
4 TABLE OF CONTENTS -I 1- Main features of an IPTV system 1.1 What is IPTV 1.2 IPTV and its value-added services 1.3 The IPTV eco-system The Video Head End The Core/Edge Network The Access Network The Home Network Middleware: The IPTV Enabler 1.4 Technological options 2- Why TV over IP 2.1 Convergence of networks and the development of bundles 2.2 Rationale for providing triple/multiple play service offers with IPTV 2.3 Re-shaping of the industry market strategies 2.4 Reconfiguration of the market landscape The traditional content distribution value chain Role of the telecom carrier in the new content distribution value chain 2.5 Some considerations on future aspects regarding service bundles with IPTV Innovative features to offer the content The customised content and unicasting Micro-reconfiguring of the players The technology evolution 3- IPTV in the USA 4- The United States 4.1 Broadband services operartors 4.2 IPTV landscape Cable TV offers and bundles AT&T Inc. and U-verse TV Bellsouth and DIRECTV Verizon and FiOS TV Qwest and Choice TV 4.3 Laws and regulations LIST OF EXHIBITS Fig. 1 The US broadband market (2004-3Q06) Fig. 2 Broadband subscribers served by RBOCs (2004-1Q06) Fig. 3 Cable modem broadband subscribers served by CaTV carriers (3Q06) Fig. 4 Broadband subscribers served by telecom carriers (3Q06) Tab. 5 IPTV service operators in the US Tab. 6 CaTV service offers by selected providers Tab. 7 U-verse TV service offers Fig. 8 Bellsouth TV offer Tab. 9 FIOS TV service offers Fig. 10 FiOS TV subscribers and penetration rates (1Q06-4Q06) Tab. 11 FIOS TV service offers
5 METHODOLOGY Our expertise consists of our ability to deliver an integrated solution to telecommunications, IT & multimedia market knowledge. INFOCOM S KNOWLEDGE FLOW Strategy activities are supported by our permanent in-house information system known as Teleseeq. This information system provides our strategy analysts with valuable historic data and up-to-date information that they use to develop custom studies. Teleseeq is a closed, coherent and consistent system, which enables us to provide a realistic overview of the market and to support our in-depth analyses. The output of the custom projects feeds then in turn into Teleseeq by enriching it and fine-tuning the data. At the same time our strategy activities are further enriched by our engineering expertise while providing in return new know-how to the group. This process creates InfoCom's knowledge flow represented in the above chart. SELECTED REFERENCES Operators: Belgacom, Botswana Telecom, Deutsche Telekom, France Telecom, KPN, Mobilkom Austria, Polkomtel, Swisscom, TDC, Tele2UTA, Telefónica, Ukranian Telecom, etc. Regulators & Others: Anacom, Citigroup Global Markets Inc., Communications Authority of Thailand, Enterprise Ireland, ETRI, European Commission, National Communications Authority of Hungary, The Boston Consulting Group, etc. ABOUT INFOCOM InfoCom is a market research and consultancy company with almost 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunica-tions, IT and multimedia industries. InfoCom s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.
6 ORDER FORM To place an order, please FAX back to [ ] Yes, I would like to order the analytical report IPTV Landscape in the USA at a price of 750,00 (pdf version). YOUR DETAILS Company: Name: Job Title: Department: Address: Country: Telephone: Fax: VAT: PAYMENT OPTIONS A) Direct transfer by express payment to: InfoCom S.W.I.F.T.: SOLA DE ST Bank: Landesbank Baden Württemberg IBAN: DE BLZ/Local bank code: Account: B) Invoice your company Purchase order #: Procurement contact: Tel: Date: ADDITIONAL PRODUCTS VoIP Consumer The objective of the study is to give an overview on marketing strategies and market potential for VoIP consumer retail services. Mobile Broadband The study analyses the potential of various mobile broadband technologies. Through a detailed assesment of the different technologies InfoCom outlines paths of development. FOR FURTHER INFORMATION InfoCom GmbH Rotebühlplatz 21 D Stuttgart Germany telefon: mail@infocom-de.com
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