Dave Horvath
17 Dec 2007 17:20
Despite a characteristic slow progression of IPTV and the troubles with the industry adopting it as a viable media outlet, UK's O2 wants to enter the IPTV market full steam. Since entering into the broadband market last year, 02 launched a similar Internet Protocol Television campaign in the Czech Republic and received pretty decent results. Given that the Czech republic only accounts for 10 million people and a market research shows broadband penetration at a mere 12 percent, the 700,000 subscribers O2 received from that part of the world is substantial. In comparison, larger areas such as the UK have a broadband penetration rate of 24 percent.
The success of IPTV in the Czech Republic just might be able to be attributed to the fact that O2 holds exclusive rights in airing ice hockey games. Despite this, the firm seems confident that it should be able to offer a competent service to the UK very soon.
Test subscriptions will begin rolling out in the UK sometime next year over the Be ADSL2+ network. Several indications have pointed towards IPTV failing as a whole. With Tiscali's customer base sliding and BT Vision failing to meet its goals, O2 still claims IPTV will stand the test of time.
Analysts agree that IPTV remains a requirement for broadband providers to retain customers and avoid becoming a commodity. Ovum's John Deleaney said, "In the medium/long term, all broadband access providers need plans to stave off commoditisation, and TV has an important role to play in those plans.
Source:
The Register