Opinions differ on IPTV's competitive impact
Connecting the research dots is especially tricky in the IP world. There is no shortage of research groups and analysts delivering forecasts, predictions and expectations. Yet there's a certain caveat emptor mentality when you are trying to put it all together.

For example, from ABI Research we hear that the "telcos will ultimately prevail over cable operators and local governments. We are at the cusp of a strong run-up in IPTV subscriber bases over the next year or two and the telcos have sympathy at the highest levels of government."

Turn the page, however, and Kagan Research tells us: "The cable industry is better positioned than ever before to defend against ever-mounting competitive threats while delivering robust revenue and cash flow growth."

Its forecasts include residential growth to reach $142/month per subscriber in 2015 and nearly 29 million IP voice subscribers by then, along with 45 million cable modem subscribers.

Then there is this from Pyramid Research: "For most telcos, traditional voice is a key obstacle facing triple play uptake and subscriber RGUs (Revenue Growth Units). The telcos' own destructive obsession to protect their legacy voice services has been detrimental to the development of attractive triple play services."

And finally, Parks Associates asserts: "The strong growth in DSL services is not without its cost. Though DSL service providers averaged 1.4 million new subscribers since 2Q of 2005, versus cable's 1.2 million, their ARPU (Average Revenue Per User) is $34/mo per sub versus cable's $41 per sub. Being a price leader may work in the short term, but in the long term, they must provide appealing service bundles."

At day's end, there's not only a lot of forecasts and predictions to digest, but lots of dots still to be connected before the final picture can be seen.

—Craig Kuhl, IP Capsule Editor, and CED Magazine Contributing Editor

NDS taps integration partners for new IPTV middleware system
NDS Group has entered the hotly-contested IPTV middleware sector. NDS introduced its entrant, dubbed Synamedia Metro, at this week's Globalcomm show in Chicago. The middleware comes pre-integrated with IP set-tops from Samsung and Broadbus Technologies' DRAM-based "B-1" video-on-demand server.

Synamedia Metro also supports applications supported by NDS' MediaHighway middleware system, including an electronic program guide, and NDS' VideoGuard digital rights management and content protection scheme.

NDS, which will compete in the sector with companies such as Microsoft TV, OpenTV Corp., and Siemens (through its acquisition of Myrio), believes its deployment experience with MediaHighway will bode well for its new IP-based middleware platform.

"Telco operators can benefit from the experience that NDS has gained in delivering middleware solutions to over 38 million subscribers and be sure they can launch advanced TV applications at least comparable with their competitors - while also taking advantage of the two-way nature of IPTV," said Nigel Smith, VP of the Broadband Internet Group of NDS.

NDS did not note any trials or deployments for its new IPTV middleware system.

Juniper creates Open IPTV
Juniper Networks Inc. has created an initiative which it says will "enable providers to more rapidly and cost-effectively deploy IPTV using open, flexible and best-of-breed networks."

The program, called the Open IPTV and Multiplay Initiative, is designed to help streamline service delivery in multi-vendor network environments, Juniper said.

The first phase of the initiative will be the Open IP Service Creation Program, created to enable applications to interact intelligently with the IP network.

Why the initiative? IP networks are complex and many times fraught with disparate software, hardware and management systems. The initiative is designed to help create a seamless process.

Pulse passes VDSL test
Pulse, a designer and manufacturer of electronic components, and Comtrend have successfully demonstrated an error-free transmission of video, voice and data over VDSL2 in "ring trip" conditions.

In what Pulse is calling a "technical breakthrough," the test results overcame a major problem for telephone companies delivering IPTV service over traditional phone lines.

The problem is that when digital video signals are transmitted simultaneously over VDSL2, interference can occur by ringing voltage or "ring trip." The result is corrupted video and unacceptable voice quality. And that's not good.

The test was conducted at Broadcom Corp.'s design lab in Mechelen, Belgium.

What's the big deal? Performance is crucial to a VDSL network, and ring trip has been a major hurdle to IPTV service. Now, the rubber meets the road: performance in a customer's home.

Skype ships software with Dell
Skype, a provider of Internet voice and video communications software, will ship its software with Dell's new XPS M1210 and M2010 mobile systems, the companies announced.

The agreement will allow Dell to provide customer access to Skype's voice and video Internet calling software. Dell will be able to pre-load Skype on the XPS 2010 mobile entertainment system, replete with a 20.1 inch HD display with integrated webcam, the companies said.

What's the deal? Another play by IP companies to link voice and video over mobile systems.

Free calling from Vapps
Vapps, a VoIP conference call provider, will offer free conference calling for up to 500 participants to Skype's 100 million registered users, the company announced.

Vapps' conference calling technology will be used by Skype to complement its growing business market, most importantly, the small to medium sized businesses, the company said.

Why the freebie? Skype's strategy is to differentiate itself from the competition, and one way is to offer free conference calling to endear itself to the lucrative small to medium sized business markets.

Charles Industries Ltd. and Phylogy Inc. have combined on the release of the AdrenaLine xDSL Conditioner.

DSL's rate and reach gets redefined
Charles Industries Ltd. and Phylogy Inc. have combined on the release of a new DSL line conditioning product, the AdrenaLine xDSL Conditioner that they say will redefine the rate and reach by which data can be deployed over copper telephone lines using ADSL and ADSL2.

AdrenaLine is a hardened OSP enclosure system employing Phylogy's Triple Stream technology, and is installed midway between the DSLAM and the subscriber.

What's the big deal? Noise and signal amplification have been DSL's biggest nightmares. By redefining the rate and reach, DSL download speeds can be increased and reach can be extended.

Four combine for IP over WiMAX
A foursome that includes VCom Inc., CableMatrix, AudioCodes and Emergent Networks are demonstrating IP voice over WiMAX technology that will enable IP voice over IEEE 802.16 air interface standard by incorporating QoS on behalf of authorized IP voice sessions.

The demo shows a deployable SIP-based voice solution for broadband wireless service providers, the companies said.

Massillon moves to VoIP
Massillon Cable TV, a 47,000 subscriber system in Ohio, will step up its services to include a VoIP subscriber management and billing system from RR Enterprise, the companies announced.

Massillon added the systems to allow its full launching of triple play services.

Charter bows business bundle
Charter Communications has introduced a business-class offering that cobbles together high-speed Internet and video services starting at $99.99 per month.

The Charter Business Bundle also features voice services in the MSO's Southern Wisconsin and St. Louis markets.

The basic bundle features 10 e-mail accounts with 20 megabytes of storage, three dynamic IP addresses, 20 megabytes of Web hosting storage, and the operator's standard/expanded basic video package. Where phone is offered, the bundle supplies two lines and a feature package of call waiting, caller ID, three-way calling, call forward busy/no answer, and 30-number speed dial.

Charter presently provides business-class services (sans phone) to more than 150,000 customers.

Time Warner contracts with Lone Star state
Time Warner Cable will provide the Texas Department of Information Resources with broadband data services for its state and local governments across the state.

Time Warner will offer single billing to government entities with multiple locations around the state, along with consistent pricing. As part of the agreement, Time Warner will also work with small, minority-and woman-owned businesses throughout the state.

SkyPilot and NuTel building broadband
SkyPilot, a provider or wireless mesh networks, will provide NuTel Broadband Corp. with equipment to build Wi-Fi mesh networks in more than 200 domestic markets, the companies announced.

The agreement with SkyPilot will allow NuTel, a managed service provider that is delivering broadband Wi-Fi services through various partnerships, to rollout its Wi-Fi networks in 14 states this summer, the company said.

Why the agreement? It's an ambitious strategy by NuTel to reach under-serviced suburban and rural subscribers and small-to-medium sized businesses.

SkyPilot will provide NuTel Broadband Corp. with equipment to build Wi-Fi mesh networks in more than 200 domestic markets.

And the research says…
Income counts with high-speed
With 69 percent of U.S. households now subscribing to an online service at home, the household income factor is now playing out, according to Leichtman Research Group (LRG).

For example, cable is attracting the higher income households, while DSL the middle-income homes. Thirty-seven percent of all households with annual incomes over $75,000 subscribe to cable broadband, while 27 percent subscribe to DSL.

And among all households earning $30,0000 to $75,000 per year, 21 percent subscribe to DSL and 18 percent to cable, LRG reports.

Also, the mean annual household income of cable broadband subscribers is 12 percent higher than their DSL counterparts. LRG forecasts that by year-end 2010, there will be more than 105 million residential online subscribers in the U.S., with about 80 percent subscribing to broadband.

Net2Phone sues Skype
Net2Phone Inc. has reportedly filed suit against Skype Technologies, alleging that the Skype has infringed on a patent tied to point-to-point Internet calling.

Net2Phone filed the suit last week in the U.S. District Court in Newark.