The era of convergence has ushered in a new avatar, IPTV-a technology that combines the power of the Internet with the traditional value of cable and satellite TV.

According to reports, IPTV subscriptions are expected to reach 53 mn by 2009 with service revenues touching $38 bn. It is predicted that Asia Pacific region will lead the IPTV revolution. Unlike CAS and DTH, IPTV brings in two-way interaction in the realm of TV viewing. Video-on-demand is another feature, which is limited in DTH and not available in CAS. Moreover, an IPTV service gives complete control to viewers with the ability to rewind, fast forward and store programs (PVR/DVR). For service providers whose ARPUs from traditional voice services are dwindling, IPTV provides greater margins. It also provides them an opportunity to be innovative and experiment with content, for which the demand is insatiable.

On a Growth Trail
Thus, the hype around IPTV is not without a reason and its demand is expected to grow significantly in the Asia Pacific region. According to Frost and Sullivan, IPTV subscribers in the Asia Pacific region are expected to reach 27.4 mn by 2013 with China and India being the high growth markets.

AT&T and Verizon have launched it in the US, and a number of service providers including BT and Swisscom have launched IPTV services across Europe. In the Asia Pacific region, Hong Kong is already a mature market with PCCW as the world's largest IPTV provider. IPTV is also deployed in China, Malaysia, Singapore, South Korea, Taiwan and Thailand.

In India, MTNL was the first to launch its IPTV services under the name of Triband in November 2006, in Delhi and Mumbai. It provides four services: TV channels, Video-on-demand, Time shifted TV and video calling and plans to add video conferencing and gaming.

It's a Challenge!
With the emergence of DTH and CAS as alternatives for IPTV, the road ahead is not a cakewalk. After its trials in August 2006, BSNL plans to launch IPTV in New Delhi, Mumbai, Kolkata, Chennai and Bengalooru. Private operators such as Bharti Airtel and Reliance Communications are also charting out their IPTV plans and are expected to launch soon.

One of the biggest challenges is to build a robust network reaching the masses. The private players would face the challenge of having access to homes, as MTNL and BSNL own 94% of the last mile access.

The other issue is the availability of content as the operators would be completely dependent on content providers and need to work out synergies with them. Pricing and quality of service would be deciding factors.

It is clear that IPTV has a great future. The driver will not be plain vanilla cable services but the applications bundled with it. What remains is the need to streamline the services and develop an ecosystem which will benefit all the players. Appropriate price points and attractive packaging is also the need of the hour. But, for now, keep watching the space for there is a lot happening.

Sonia Sharma
sonias@cybermedia.co.in