IP Capsule E-Newsletter, March 15, 2006

Wed, 03/15/2006 - 8:31am

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March 15, 2006

Study: Early adopters like IPTV, but will they buy?
Early adopters are showing their decision-making savvy when it comes to considering IPTV, which is being defined as a mix of new interactive television and communications offerings delivered via broadband and Internet protocol, reports In-Stat.

The study, sponsored by Siemens, gauges early adopter interest in IPTV, reveals some interesting numbers. Eighteen percent of early adopters who currently subscribe to cable or satellite, would "probably" or "definitely" switch to an IPTV service from their telephone company provider. Yet given a 10 percent savings offering on an IPTV package, an additional 34 percent of the remaining non-committed early adopters would "probably" or "definitely" switch.

Translation: Even tech-savvy early adopters want a good deal on price. Some other telling stats from the report include:

  • The most popular services early adopters were willing to pay for included time-shifted TV, video telephony/chat, video home surveillance and gaming. The majority said they would spend an additional $7.50 a month to get each additional service.
  • 90 percent said they were interested in time-shifted television, and 58 percent said they'd pay for it.

The results, though not real surprising nor dramatic, says Michelle Abraham, principal analyst for In Stat and author of the report, should encourage potential providers of IPTV.

"We wanted to see what resonated with customers, and we found they do want these services, whether from cable or the telcos. The response was equal in customers' minds as to who they would prefer getting the services from. Time-shifted TV definitely stood out, with the rest probably being a gradual shift," Abraham says.

It's the 50-50 split that probably is the most telling number of all, however, and is yet another clear signal that to survive and prosper in the IP video delivery business, it's price, marketing and the bundle that will ultimately impact the gradual shift.

Home improvement, real estate channels add curb appeal
The Real Estate and Home Improvement Channels are moving into the IPTV neighborhood. The two emerging IP-based broadcasting networks that deliver customized VOD real estate and home improvement TV programming to online audiences globally will debut this fall, according to their parent company, MultiChannel Ventures.

Video content will include traditional TV programming and industry created video content from real estate or home improvement service providers and retailers. "Think of us as launching two fully interactive video cable networks over the Web for the entire U.S. real estate and home improvement marketplace," says Michael Gerrity, Chairman of MultiChannel Ventures.

What's the big deal? Think of the announcement as a precursor to similar types of networks to follow. With the emergence of long-form content and the growing value of driving viewers of both TV and online content to packaged, streamed commercials that offer deeper and wider data about their products and services, with the ability to click for more information, the appeal of these interactive networks is expected to appreciate in value.

And the research says....
Despite the buzz surrounding the potential of IPTV, or more specifically, telco TV, Kagan Research is finding the buzz may be just that, with more style than substance.

It reports that despite "ambitious plans to spend heavily on fiber upgrades to accommodate video, telcoTV will have only a minor impact on the overall pay TV landscape in the near-term."

Kagan projects that over the next five years, the nation's phone companies will gain nearly six million subscribers for a five percent piece of the multichannel pie by 2010. By end of 2006, it estimates incumbent phone operators will pass 26.3 million homes with fiber, and by 2010, of the 55 million homes passed with fiber, 75 percent, or 40 million, will be video-enabled.

And the telcos' share of the multichannel market in 2015? Just 8.5 percent, Kagan predicts.

The Siemens Gigaset C450 is one of several phones that will offer the M34 USB adapter with Yahoo!
Siemens and Yahoo! raising their voices
Siemens Home and Office Communications Devices LLC, a wholly owned subsidiary of Siemens Communications, and Yahoo! are extending their VoIP calling capabilities to Siemens' Gigaset Cordless telephones, the companies announced.

The agreement calls for the companies to offer Siemens' Gigaset M34 USB adapter, which IP-enables Gigaset telephones with the VoIP calling capabilities of Yahoo! It will allow users to make and receive calls through the free PC-to-PC calling feature of Yahoo Messenger with Voice.

Verso and Georgia Tech team for post-graduate partnership
Verso Technologies and the Georgia Tech Information Security Center will collaborate on speaking engagements, internships and research projects in areas such as technical and policy research and on topics such as VoIP security, mobile security and encryption.

GTISC performs technical research for a variety of projects that address fundamental challenges to secure applications and communications, and researches international security policy issues.

Why the teamwork? GTISC will get real world experience from Verso, which is a global provider of next generation networks.

ShoreTel getting Extreme makeover
ShoreTel, Inc. and Extreme Networks, Inc. have agreed to work together to provide joint customers with an "end-to-end" VoIP and data network solution, the companies said.

The two companies recently completed interoperability tests with Extreme's voice-class Ethernet switches.

Cedar Point thinks at Mindspeed
Cedar Point Communications has selected VoIP processors from Mindspeed Technologies Inc., which will find a home inside Cedar Point's SAFARI C3, a platform that combines several PacketCable network elements in one device.

Mindspeed's suite of VoIP software, combined with its Comcerto Series processors, will offer a family of semiconductor solutions for implementing CableLabs' PacketCable initiative for advanced, real-time digital multimedia services over two-way cable plant, the company said.

Bell Labs tolls 107 Gbps
Bell Labs, the research and development arm of Lucent Technologies, has reported the first optical transport of electronically multiplexed 107 Gigabits per second (Gbps) data, which, the company says, is a significant milestone in its march toward offering transport speeds of an even loftier 100 Gbps.

The breakthrough, Bell Labs maintains, is crucial to carriers looking to deploy architectures that are expected to experience dramatic increases in the amount of IP/data traffic.

Why all the buzz? As carriers look to deploy multimedia IP services such as IPTV, networks are requiring efficient multiplexing as they transmit high amounts of IP-based data in its native Ethernet format.

AT&T speeds access to small-to-mid-size business
AT&T Inc. is rolling out its new high-speed access option for small- and mid-size businesses.

The new service is called AT&T Ultravailable Service Option 2 and is designed to provide an affordable, feature-rich, end-to-end ring access alternative, the company said. It will also provide an option for customers requiring Dense Wave Division Multiplexing (DWDM).

Juniper and NEC expand partnership
Juniper Networks, Inc. and NEC Corp. will jointly develop next-generation networking solutions for the Japanese carrier market, the companies announced.

The two plan to enable integration of NEC's advanced optical component and transmission technology with Juniper's carrier-class IP routing platforms to produce multi-terabit solutions with low power consumption.

In addition, the partners plan to develop agile, open and customized products based on Juniper Networks' JUNOS routing operating system.

UPA completes version one
The Universal Powerline Association (UPA) has announced the completion of the first version of its "Digital Home Standard" (DHS) high-speed powerline networking specification.

The specification will provide a robust field-proven industry specification which OEMs can build compatible products to enable the digital home. Work on the specification began in early 2005.

The combined AT&T/BellSouth will control 22 percent of all consumer dollars spent on telecom services, including video services, and 34 percent of the dollars spent in the business market and 37 percent on wired line phone service, reports TNS Telecom.

March 2006
Issue Contents »

Company: Vyyo Inc.
Headquarters: Palo Alto, Calif.
CEO: Davidi Gilo

Claim to Fame: Vyyo provides wireless and wireline broadband access solutions. Cable television and telecommunications operators, wireless ISPs and enterprise use Vyyo's DOCSIS-based solutions to deliver telephony (T1/E1), high-speed data, and VoIP to business and residential subscribers. It also markets a bandwidth overlay designed to expand spectrum to the 3 GHz range.

Recent news of note: Demonstrated products for the delivery of business services and high-bandwidth applications at the CableLabs' Winter Conference.

March 19-23
Las Vegas, Nev.
More information

CCMI's Profitability Assurance 2006
March 22-23
San Diego, Calif.
More information

Internet Home Alliance
Spring 2006 Connected Home Research Planning Conference

March 29, 2006
Orlando, Fla.
More information

NCTA National Show
April 9-11, 2006
Atlanta, Ga.
More information

ACA Washington Summit
American Cable Association
May 8-9
Washington, D.C.
More information

SCTE Cable-Tec Expo
June 20-23, 2006
Denver, Colo.
More information

2nd Annual C-COR Global IP Summit
June 28-29
Athens, Greece
More information

Copyright © 2006 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.



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