IPTV will be the killer application for Broadband Service Providers in the new competitive environment of the proposed National Broadband Network (NBN), according to a whitepaper released today by Ericsson Australia and IDC.
The whitepaper, titled “IPTV in Australia: Why Broadband Service Providers Need a Plan,” highlights the need for ongoing service differentiation between Broadband Service Providers (BSPs) in the future.
“The NBN may effectively level the playing field for many BSPs, requiring a high degree of service differentiation rather than simply competing on price,” said Kursten Leins, Strategic Marketing Manager - Multimedia, Ericsson Australia.
IPTV, the delivery of video services over a managed IP network down to a subscriber’s set-top-box, will enable Broadband Service Providers to compete with satellite and cable providers for the provision of on-demand and live video. In addition to video, IPTV services will also include online gaming, interactive advertising, presence and communications such as video and voice, customised user-interfaces and the ability to deliver all these services independent of the set-top-box provider.
“Taking into consideration the experiences and evolution of IPTV offerings in Europe, it has become very clear that a fragmented model in which multiple or all BSPs deploy their own IPTV solution for a limited number of subscribers is not the most efficient model,” said David Cannon, Program Manager Telecommunications, IDC Australia. “This raises issues with service delivery and support as well as content acquisition and cost versus revenue – particularly around access to content at a cost-effective rate and the ability to attract high levels of advertising and sponsorship revenues.”
IDC believes that the most sensible approach to IPTV in Australia should be via a combined commitment from the Broadband Service Providers, which would essentially be a 'white label' or wholesale-based IPTV service. In this model there would be one entity which is responsible for the back-end support services required to deliver and support the service, as well as supporting content acquisition and distribution rights.
By the end of 2008, IDC estimates that there will be 8 million IPTV subscribers within the Asia Pacific region (excluding Japan). Australia is expected to have slightly less than one million subscribers by the end of 2012.
Hubert Kjellberg, Ericsson’s global head of media and internet, is presenting on “The Televisionary Experience” at the AIMIA Digital Media Summit in Sydney on 10 September, and will also discuss IPTV.
The IDC White Paper “IPTV in Australia: Why Broadband Service Providers Need a Plan” (September 2008) is available for download.
For more information on IPTV please visit the Ericsson Australia website.
About Ericsson
Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of "communication for all" through innovation, technology and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.
Visit www.ericsson.com or www.ericsson.mobi.
For more information please contact:
John Papanidis
External Relations Manager
Ericsson Australia
Tel: +61 (0)2 9111 4412
Mob: +61 (0)401 237 854
