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Report: MDUs can be a boon for IPTV providers

Thu, 03/19/2009 - 8:30am
Mike Robuck

Hotel and multi-dwelling unit (MDU) markets could provide a financial shot in the arm for IPTV service providers.

According to a recent report by In-Stat, growth opportunities abound for IPTV providers when it comes to bringing services to high-density environments such as apartments. In-Stat said the market for deploying IPTV services to high-density apartments would exceed $6 billion by 2013.

While hotels also provide a financial opportunity for IPTV and cable providers, the downturn in the economy may mean that hotels will hold off on their upgrades for the near term, according to In-Stat.

Examples of wins in the MDU market include Time Warner Cable (story here), and RCN (story here).

“Deploying IPTV in the MDU market is a no brainer for service providers,” said In-Stat analyst Amy Cravens. “Deploying IPTV in high density environments offers significant cost savings compared to single-family housing markets. In this economy, services providers are looking to maximize the return for every infrastructure investment dollar, and MDU deployments provide just that.”

Recent research by In-Stat included the following:

  • Nearly 70 percent of MDU IPTV in the United States will be deployed with Fiber to the Home (FTTH)
  • The slump in single-family housing is prompting providers to shift interest to the MDU
  • Regionally, Asia-Pacific is the largest opportunity for subscriber growth in the MDU
  • While the MDU offers significant advantages for the provider after securing access to the building, negotiating entry can be difficult
  • Competitors BNS, Guest-Tek, iBAHN, LodgeNet, and Verizon are among those targeting the Hospitality and MDU market for IPTV

More Broadband Direct 03/19/09:

•  Hargray tabs Entone for IPTV services
•  Report: MDUs can be a boon for IPTV providers
•  Tandberg, BroadSoft offer biz com system
•  N.J. sues Verizon over ads for FiOS services
•  Ballmer reiterates interest in Yahoo talks
•  IBM could shake up Silicon Valley with Sun deal
•  Charles Industries names O'Brien sales director for CATV sales
•  Broadband Briefs for 03/19/09

 

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