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Americas Issue: September 2006
Feature
Intelligent Content Distribution: A Critical Enabler for IPTV
A delicate balance
by Danny Klein and Jon Arnold
Everybody is talking about IPTV these days and for good reason. Video is the stickiest service of the triple play, and service providers are looking desperately for ways to increase revenue while fighting to retain customers.
Cable operators have been quicker to market with triple play packages, largely because voice is easier for them to add than video is for a telco. To date, satellite has been the telcos’ video route to market, but with the advent of IP and multimedia services, telcos cannot be competitive by simply maintaining the status quo.
As cable-based triple play offers continue to steal away telco subscribers, there’s an increasing urgency for telcos to roll out IPTV. Not only are telcos at risk of losing their traditional revenue streams but also the new revenues that would come from video services.
Besides aggressive cable operator marketing efforts, broadband adoption is growing rapidly in the United States, which is a prerequisite for IP-based services. In addition, mobility is becoming ever-present, and the market for mobile video services is beginning to emerge. Never before have consumers had so many video options; the battle for the broadband home may become the most important challenge telcos have ever faced.
Haste Makes Waste
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