Not only is broadband penetration greatly increasing, but more and more content is becoming available in a digital format - making it easy to distribute over telecom networks. The conditions for successful IPTV offerings already exist, and Ericsson is in a unique position to take TV to a whole new level with personalization and interactivity, as well as communication.

Ericsson has a clear vision and roadmap towards a fully converged IPTV solution. End users will choose content on demand, customized to their profile with functionality such as telephony, chatting and messaging. They will interact with their favorite shows, receive program reminders and share video content with others. At the same time, content can be tailored to users, ensuring they only receive information or advertisements relevant to their personal profile.

The recent acquisition of TANDBERG Television is a key part of Ericsson's strategy for delivering a mass-market IPTV service. TANDBERG Television has a strong track record and vast experience from years at the cutting edge of the digital media industry.

Alan Delaney, IPTV Business Development Director at TANDBERG Television, says that whatever the screen size, TANDBERG Television has the ability to deliver best-in-class video quality across multiple solutions. TANDBERG Television is the world's leading provider in advanced video compression technologies, accounting for around a quarter of all head-end encoders in the market.

"This equipment is fundamental," Delaney says. "It is what the end user sees - the quality of the picture and the experience. Operators need to ensure they provide as good picture quality as possible, and that is where TANDBERG Television's expertise comes to the fore."

TANDBERG Television also complements Ericsson's IP offering with a number of market-leading value-added services, such as a video-on-demand (VoD) platform with back-office functionality and a proven robustness and reliability that comes from running about 85 percent of the VoD systems in the US. TANDBERG Television can also provide interactive advertisement capability, allowing operators to deliver tailored advertisements to selected audiences.

These two strong portfolios create a compelling combination for end-to-end IPTV solutions, everything from network solutions and services to management and hosting. Ericsson is driving the movement towards IPTV through standardization bodies and the Open IPTV Forum, and expects IPTV to become a mass-market service within the next few years. Research agency Gartner predicts subscriptions will reach 48 million households worldwide by 2010.

A new era of television is upon us. The living room couch may well remain our favorite place to watch TV, but the number of interactive and personalized services is set to multiply rapidly. TV is now two-way, and this means an abundance of new revenue opportunities for operators.