Embracing this shift, Ericsson is well positioned to help users take advantage of the change. Sebastian Barros, Solution Manager for Ericsson's multimedia solutions, says interactivity will be one of the most attractive parts of its new TV offering.
"Interactivity will play a key role in the evolved TV experience," Barros says. "Users want to be in the driver seat when it comes to the new TV experience. They want to watch what they want, wherever they are and on whatever device they happen to be using - whether it's a PC, laptop, mobile phone, TV or any other connected electronic device."
Consumers are pushing interactive services such as video-on-demand (VoD), electronic program guides, network personal video recording and voting, as well as chatting features to use while commuting, waiting in line or as a complementary device in prime time.
Considering the current service penetration level varies from 5 to 10 percent and the daily service usage is 15 to 20 minutes, service providers have a good opportunity to leverage their existing capabilities by using the current network to deliver the new TV experience. And 3G will be able to support this network.
Ericsson's recent acquisitions have also been key.
"We are the only company to offer a complete end-to-end solution," Barros says. "We have complemented our portfolio through recent acquisitions and strengthened our position in the TV arena."
With Entrisphere, Ericsson gained powerful GPON technology - a strong alternative for operators eager to take their fixed broadband access into the fiber/high-definition TV age. With Redback's intelligent routers, Ericsson strengthened its position in 15 of the 20 largest broadband networks in the world. With Marconi, the company enriched its portfolio with the leading transport solutions for transforming the network to Carrier Ethernet and WDM.
The recent acquisition of TANDBERG Television also helped strengthen Ericsson's offering, Barros says. TANDBERG Television has relationships with more than 2000 industry players and more than 180 IPTV deployments worldwide.
"Understanding and integrating TANDBERG Television has been very important for us," he says. "The unique combination of TANDBERG Television and Ericsson will create a leading player in networked media solutions for telecom, cable and satellite operators, as well as media companies."
IPTV remains in its infancy, but analysts anticipate that it will become a mass-market service within the next five years. From a base of 6.4 million in 2006, subscriptions are expected to more than double in 2007, reaching 48 million households worldwide by 2010, according to the research agency Gartner.
In terms of delivery, Ericsson feels secure and able to work with the new European Union promotion of DVB-H as standard for dedicated broadcast mobile TV networks deployments across Europe.
"Ericsson believes that the main point is to build a sustainable and profitable business case for the operator to support their investments," Barros says.
By encouraging a single standard, the EU meets its objective of reducing the kind of market fragmentation caused by the multiple technical options for mobile TV transmission.
