SlideShare une entreprise Scribd logo
1  sur  42
IPTV India Progress Report
        By Knowledgefaber
       Published: April, 2009




                                Knowledgefaber
Access content on home TV from relatives, friends…peer to
Interactive                 peer downloads
gaming

                                                                                        Broadcast video




                                      IPTV Services




              Skip
              Advertising

                                                                                                          Knowledgefaber
Research Methodology



• Knowledgefaber researchers have been tracking the
  IPTV space in India and globally on an ongoing basis
• Numerous Interviews (primary research) with key
  industry participants from Telcos, equipment providers,
  technology providers in India
• Interviews with experts from around the world who had
  experience of IPTV deployments and service
  provisioning
• Secondary research including but not limited to annual
  reports, company websites, journals, magazines,
  literature shared by participants, web search
  Disclaimer: Information contained in the report has been obtained from sources deemed reliable and no representation is
  made as to the accuracy thereof. Neither Knowledgefaber or its affiliates, officers, directors, employees, owners,
  representatives nor any of its data or content providers shall be liable for any errors or for any actions taken in reliance
  thereon
                                                                                                                Knowledgefaber
IPTV Globally and in India
IPTV India Dynamics
IPTV Readiness and Challenges
IPTV Subscriber Base Growth and Opportunity




                                              Knowledgefaber
Global IPTV market has been growing rapidly since last 3 to 4
years
The term IPTV was       First Commercial          In September 2003,          It was projected that        At the end of 2008
first used in 1995 by   Deployment: Kingston      PCCW, Hong Kong’s           number of subscribers        global IPTV subscriber
a company called        Communications, a         incumbent fixed-line        will grow from 3.7 million   was 23 million and
Precept Software.       regional                  operator, became one of     subscribers in 2005 to       revenue was around
Precept designed        telecommunications        the first wireline          36.9 million in 2009 that    $5.9 billion as per
and built an internet   operator in UK,           operators in the world to   didn’t happen                industry estimates
video product           launched Kingston         launch an IPTV service
named "IP/TV".          Interactive Television,
                        an IPTV over DSL
                        in1999




Source: Knowledgefaber analysis, estimates by various research firms
                                                                                                                                Knowledgefaber
Hong Kong, France, Taiwan and Belgium are leading the pack in
terms of penetration


Global Top 10 IPTV Markets, by Penetration (2009)
                                                                                                         Highlights
                                                                              55.21%
                                                                                         • Hong Kong is leading in penetration level
                                                                                           while France is leading in terms of
                                                  30.03%
                                                                                           subscribers.
                             10.88%


                             9.88%


                        6.43%                                                            • There are currently around a hundred and
                                                                                           twenty IPTV providers in over sixty
                                                                                           countries, with Europe and the far eastern
                     3.98%
                                                                                           markets taking the top spots.

                     3.90%


                   2.35%                                                                 • In addition, main broadcasters in UK like
                                                                                           the iPlayer from the BBC provide online
                  1.13%                                                                    catch up* services and Channel Four
                                                                                           provide VoD services.
                  0.74%


 Note: Penetration is defined as % of IPTV subscriber among Broadband users.
 *Online catch-up service allows viewers to catch up (watch) on BBC telly missed in the week
 Source: Informa Telecoms and media                                                                                   Knowledgefaber
Hong Kong’s PCCW has shown the way to succeed in IPTV
through its NOW TV…

       Turning Free TV into Money Maker                                             Strong Infrastructure to Support IPTV

 • PCCW, the incumbent carrier in Hong Kong
   launched its IPTV back in 2003, providing                                    • PCCW reports that 93 percent of households
   broadband customers with a set-top box and                                     in Hong Kong experience 6 Mbps of
   23 TV channels as a starter pack all for free                                  downstream speed on its ADSL network.
   under the name NOW TV.                                                       • PCCW now delivers more than 160 channels
 • Later It secured some unique content --                                        to its customers over VDSL and fiber-to-the-
   namely, English Premiership soccer -- and                                      home (FTTH) broadband connections.
   developed some IPTV channels of its own,
   including multiple sports channels and a
   business news service.
 • PCCW’s exclusive offerings forced end-users
   interested in such content to subscribe to
                                                                 PCCW                        Attaining Dual Benefits
   NOW TV, thereby turning a free TV into
   money maker.                                                                 • As intended, NOW TV has made PCCW’s
                                                                                  broadband service more attractive.
                                                                                • Additionally, since the introduction of NOW
                                                                                  TV, customer loss has halved to less than 1
        Significant Growth over the Years                                         percent, clearly indicating increased loyalty
                                                                                  levels, thus ensuring continued revenues for
                                                                                  broadband while gaining additional revenues
 • From 361,000 subscribers at end of 2004,
                                                                                  through IPTV.
   PCCW’s IPTV subscriber base grew to
   932,000 by the end of September 2008, of
   which 668,000 pay monthly fees to buy
   additional channels or IPTV packages.                          By pulling together an impressive and exclusive list of
                                                                  content along with supporting advanced infrastructure,
                                                                   PCCW has become the world’s largest IPTV provider
Source: Industry Interview, Pyramid research, Industry reports
                                                                                                                 Knowledgefaber
What is happening in India


•    Early movers in this field are BSNL and MTNL. MTNL rolled out it's
     IPTV service in Mumbai on Oct-2006 marking the first IPTV
     deployment in India
•    Bharti Airtel and Reliance Communications were given the go ahead
     to launch their IPTV services in the Indian market in Feb-2008 by
     TRAI
•    Airtel has launched its service in Jan-2009 while Reliance is still
     testing its services
•    Drivers –
       –    Interactivity
       –    Value added services
       –    Customer-end benefit
       –    Fuelling broadband demand

•    Inhibitors–
       –    Broadband penetration and n/w capability
       –    QOS (Quality of service)
       –    Content Readiness and cost
       –    Cost of service for user
       –    Regulatory framework
       –    Other infrastructural problems

Source: Knowledgefaber research and analysis
                                                               Knowledgefaber
IPTV Service Providers in India

 Company    Description                    Product/ Services                     Tie-Ups/Partnership (only illustrative list given here)

 BSNL       • BSNL has been offering       • Company is providing triple play    • Aksh Optifibre, Cable and optical fibre manufacturer has
              IPTV services in several       service featuring telephone,          collaboration with state-run Bharat Sanchar Nigam Limited
              cities of India, some of       broadband internet and TV             (BSNL) for delivery of Interactive Personalized Television
              these includes Kolkata,      • Additional services like pause,       (IPTV) on its broadband network in the north Indian Market
              Bangalore, Ahmedabad,          fast forward VOD(video on-          • IOL Broadband (India on Line Broadband) has a tie up with
              Gurgaon, Jaipur,               demand)                               (BSNL) for Internet Protocol television (IPTV) services to
              Chandigarh, etc                                                      BSNL subscribers
            • BSNL Kolkata started                                               • Smart Digivision has a contract with BSNL to provide IPTV
              its services in Aug-07                                               services to its customers in 53 cities
                                                                                 • Verimatrix, a provider of content security technology
                                                                                   solutions for pay-TV networks, has announced that it is
                                                                                   providing Verimatrix Video Content Authority System (VCAS)
                                                                                   for IPTV ( News - Alert) to protect IPTV services to Bharat
                                                                                   Sanchar Nigam Limited (BSNL) customers
 MTNL       • MTNL is offering IPTV        • Triple play services including      • MTNL and IOL Broadband are in IPTV deal, in which IOL will
              services in Mumbai and         telephone, Broadband internet,        provide IPTV content to broadband subscriber of MTNL
              Delhi so far                   and TV is provided                  • Aksh has a agreement with MTNL to provide IPTV
            • IPTV services in Delhi       • Video on Demand and other             broadband content services to MTNL subscribers in Delhi
              started in Oct-06              vale added services are               and Mumbai
                                             available
 Bharti-    • In its first phase Bharti-   • Company is offering triple play     • IBM provides software and IT requirements for Bharti Airtel'
 Airtel       Airtel has started             advantage of telephony,               non-mobile businesses which include Direct to Home (DTH),
              providing IPTV services        broadband and TV. Company is          Internet Protocol TV (IPTV),
              to customers of NCR            also giving services like Video-    enterprise services and broadband
              (Delhi, Gurgaon, and           on-Demand, Time shift TV, and       • UTStarcom has a contract with Bharti Airtel to supply its
              Noida)                         interactive 2.0 (includes options     RollingStream end-to-end IPTV solution
            • Bharti Airtel started its      like freedom of ordering pizzas
              services in Jan-2000           and movie tickets from TV set)

 Reliance   • IPTV services of             • Triple play services                • Reliance Communications Ltd. and Microsoft Corp. has a
              Reliance are under test      • Real-time Video-on-Demand,            partnership to deliver Reliance’s Internet Protocol Television
              and expected to be             High definition, subtitling and       (IPTV) service, which is powered by the Microsoft
              launched soon                  audio language choice, Digital        Mediaroom IPTV software platform
              commercially                   video recording, etc.
                                                                                                                          Knowledgefaber
Most of the IPTV market in India is still in Stage 1


            Stage 1                                     Stage 2                               Stage 3


       Underlying         DSL, ADSL
     Infrastructure      and ADSL2+
    Services offered        SD TV
                        channels, some
                          VAS, QOS
                          satisfactory
     Compression           MPEG-2,
      Technology           MPEG-4

     Players (Country): MTNL, BSNL
            (India), Airtel (India)             Underlying       ADSL2+, VDSL
                                              Infrastructure                          Underlying        Fibre, possibly
                                                                                    Infrastructure       WiMAX, LTE
                                          Services offered       Triple play with
                                                                 good QOS, HD       Services offered    HD TV, Whole
                                                                TV, serve homes                          Home DVR
                                                                with multiple TV,
                                                                      DVR            Compression         MPEG-4 and
                                                                                     Technology           Possibly
                                              Compression           MPEG-4                                MPEG-7
                                              Technology


                                               Players: PCCW (Hong Kong), AT&T
                                                       (USA), Verizon (USA)


Source: Industry interview and News reports
                                                                                                       Knowledgefaber
IPTV Globally and in India
IPTV India Dynamics
IPTV Readiness and Challenges
IPTV Subscriber Base Growth and Opportunity




                                              Knowledgefaber
IPTV value-chain in India


                   Equipment and Technology                           Network and Service Provisioning                                        Customer

                                                                                                                                            Subscribes
                                                                                             Sub-
                   Equipment               Software                                        contracts          Franchisee/Third   Subscrib
   Players         /Hardware              Systems &                      Telcos                                                                 Owner
                                                                                            Revenue            Party Provider      es
                    Systems                 Others
                                                                                            Sharing
                                                                                       Broadcaster, content
                                                                                             creator


               • Video Headend      • IPTV middleware         • Copper wire and DSL                    • Content Aggregation,
               • Decoder + Streamer   (homegrown systems        technology network                       Content Distribution
               • VoD / nVoD Servers   have seen in the case   • Content sourcing                         Network, Content
               • Switches             of many global          • Procures hardware and                    Sourcing
               • DSLAM                carriers)                 software                               • Technology deployment
               • IP-STB             • Digital rights                                                   • Uses Telcos DSL
Roles




               • xDSL Modem           management (DRM)                                                   network for service
                                      technology                                                         provisioning
                                    • Content Related s/w     •   Branding, and packaging                                               • Buys Set-top box
                                                                                                       • Branding, and
               • IP-STB             • Billing                 •   Installation                                                          • Buys IPTV Packages
                                                                                                         packaging
               • xDSL Modem         • Service monitoring      •   Service Provisioning                                                  • Pulls content and
                                                                                                       • Installation
                                      and network probes      •   Billing                                                                 advertisement
                                                                                                       • Customer support
                                    • CAS, IP-Scrambler       •   Customer support


                                                                                                                                       • Tech geek, subscribes to
             • Alcatel-Lucent,      • Microsoft, UTStarcom    •   MTNL                               • Aksh Optifibre Ltd.
 Example                                                                                                                                 every new technology
               Ericsson AB, Nokia   • Digisoft, Envivio,      •   BSNL                                 (Manufacturer of fiber,
    s                                                                                                                                  • Hi-Speed Broadband
               Siemens Networks       Harmonic, I-Make,       •   Bharti (Airtel)                      copper wire, etc.)
                                                                                                                                         Subscriber and video
               Nortel Networks,       Verimatrix              •   Reliance                           • Time Broadband
                                                                                                                                         enthusiast
             • NSN, UTStarcom       • Viaccess, Thomson       •   XYZ (Confidential)                   Services Pvt. Ltd.
                                                                                                                                       • Homes with more than 1 or
             • Mototech                                                                              • Smart Digivision
                                                                                                                                         2 TVs and interested in
             • Thomson, Sagem                                                                                                            triple play and single
                                                                                                                                         service provider
 Note: To some extent IPTV related R&D work is also being done here in India by some players such as UTStarcom, NDS, etc.
 Sun and Tech Mahindra along with AMD have a IPTV lab at the Tech Mahindra facility in Pune                       Knowledgefaber
Two business model have emerged in this market
  State owned companies are using franchise model while private players opting for there own
  channel.


          • Airtel IPTV is based on the existing             • Franchise model includes two
            DSL network, and Airtel is going all               entities a content provider and an
            by itself with the help of technology              infrastructure owner. Content
            partners.                                          provider will broadcast content and
          • UTStarcom has a contract with                      utilize the infrastructure of other
            Bharti Airtel to supply its                        entity.
            RollingStream end-to- end IPTV                   • Advantages – New ideas and
            solution                                           capital into the business and high
                                                               speed-up the deployment of IPTV.
                                                             • Companies like BSNL and MTNL
                                                               are using this through IOL to
                                                               provide IPTV services in various
                                                               parts of India

                                                              Franchise model ( Call it
               Telcos going by
                                                               MVNO concept of IPTV
                 themselves
                                                                      market)




  Note: In the both the models revenue generation process, technology tie-ups and content tie-ups are almost similar

  Source: Company website, News articles, Industry interviews
                                                                                                    Knowledgefaber
IPTV Globally and in India
IPTV India Dynamics
IPTV Readiness and Challenges
IPTV Subscriber Base Growth and Opportunity




                                              Knowledgefaber
IPTV is exciting for stakeholders but making it work would be a
huge challenge in India



                           Is India ready
                             for IPTV?




                                                   Will the
        Threat of                                companies
       substitutes?
                              IPTV               make or lose
                                                  money?




                                                          Knowledgefaber
Is India ready
                                                                     for IPTV?
You can sense from the stakeholder’s response that
IPTV is going to take some time to gather critical mass



•   Telecom players (read carriers) are not very aggressively pushing
    IPTV right now.
•   Infact the same players are heavily involved in their DTH service
    promotions.
•   We believe that IPTV will take some years to gain scale and will
    directly depend on telcos push and broadband penetration
•   Its success would depend on how seriously the top 4 telcos (with
    broadband infrastructure) take it up. Their involvement and creation
    of push would depend on the rate of return and the point of break
    even




                                                                Knowledgefaber
Threat of
                                                                                                                    substitutes?
Compare DTH versus IPTV
  “Just providing video Programs/video on demand through IPTV does not seem to be a viable business model in India since cable
  and DTH have already established a very large viewership base for themselves.
  Telcos and IPTV service providers have to come out with newer applications that can catch the attention of consumers. Unless
  IPTV establishes a unique selling proposition (USP), it will not be a popular choice for TV viewing” - Mahendra Nayak, Domain
  Head- Embedded Systems, Product Design Services, Tata Elxsi Limited


    PARAMETER                                          DTH                                            IPTV

                                                                                       • High cost of the DSL line and right of
                                      • Cost per line is much lower as no                way permissions
   Cost for Operator                    requirement of a physical line to home         • Expensive hardware and software for
                                                                                         handling the complex systems



                                      • Content     creators      (broadcasters)       • Content creators are relatively less
                                        actively/aggressively pursue       DTH           interested to partner with IPTV
    Content Access                      operators to partner with them                   operators, and charge higher fees




                                      • DTH is considered most suitable for            • For IPTV, the cable connectivity needs
                                        geographically large countries like the          to be physical drawn until the customer
   Accessibility and                    US, Brazil, India because cost of a              point, resulting in high installation
                                        DTH     connection     for   customers           charges for customers
       Cost for                                                                        • IPTV’s Access to remote customers
                                        anywhere in country is the same
     Customers                        • Connectivity can be given even for               might not be possible for many more
                                        people in remote villages                        years




Source: Knowledgefaber Analysis, Industry Interviews
                                                                                                              Knowledgefaber
Will the
                                                                          companies
Inhibitors seems to outweigh the drivers in the current                  make or lose
                                                                           money?
scenario

                                Drivers                  Inhibitors




  Source: Knowledgefaber analysis, industry interviews                Knowledgefaber
Will the
                                                                                                                           companies
Drivers                                                                                                                   make or lose
                                                                                                                            money?

          Driver                                                            Description

                                     • Option to choose from various available programs (including already broadcasted content),
                                       freedom to watch or skip advertisements and high level of interactivity
                                     • Parents can have a full knowledge/control of what kind of programs there kids watch and they
    Interactivity                      can control their timings, so as kids can study in exam time and watch there saved cartoon
                                       later in vacations




                                     • Customer have a option to watch two simultaneously broadcasted programs. For ex: IPL match
    Value-Added                        and soap opera
                                     • Availability of good and creative content, additional ‘killer applications’ like Video on Demand,
      services                         Music on Demand, karaoke, Internet on TV, voice/video conferencing, program guides,
                                       greetings, and home to home chat




     Customer-                       • Video quality of DTH is highly dependent on weather quality, but with IPTV this problem is
        end                            solved as this is provided through DSL cables mostly
                                     • TV sets with limited no. of channels can also watch as many channels as provided by service
      benefits                         provider as set top box removes the limit of number of channels available on TV set


       Fuelling                      • Triple play package can work as a booster for broadband penetration as this will increase
      broadband                        broadband subscription along with high ARPU customer base for companies, therefore telcos
                                       would push it further
       demand

Source: Knowledgefaber research and analysis                                                                        Knowledgefaber
Will the companies
                                                                                                                       make or lose
Inhibitors                                                                                                                 money?

       Inhibitors                                                            Description
                                     • Broadband penetration is still a big challenge in India
      Broadband                      • There is a high cost of RoW permission charged , other high capital costs associated with last
      penetration                      mile distribution network and cost of services for users
        and n/w                      • IPTV requires at least 1.5 Mbps line (with MPEG-4) for basic services at a good QOS and 8
                                       Mbps line (with MPEG-4) for HDTV services. Some part of the broadband networks are not
       capability                      ready yet
                                     • Services provided till last year have been no less than disappointing. There are video freezing,
          QOS                          frames freezing and other such problems. The old generation copper network and low bandwidth is
                                       just not going to work for IPTV. Add to that content handling capability issues.
                                     • There is a lack of high definition content available as Indian sops and other content is still
       Content                         produced in traditional formats
   readiness & Cost                  • Broadcasters are not offering the right prices to the IPTV players

                                     • IPTV is still costly as compared to its competitors like DTH and traditional cable (as low as $4
    Cost of services                   per month in some cases), and it is difficult to convince price conscious Indian consumers to
       for user                        shell out that extra cost
                                     • Regulator framework in this area is not yet clear as government is still working on nitty-gritty's
                                       of policy regulating this fast evolving technology rich system, there aren't much examples
     Regulatory                        available of a emerging market adopting this technology
                                     • One of the power of IPTV to provide internet based channels is also not working in its favor as
     framework                         they are still not allowed in India due to censorship issues associated with them. Some of the
                                       smoke is getting cleared on this issue though

                                     • DTH has been immensely successful in remote areas where cable TV could not reach
                                     • Complex content delivery platform having integration challenges associated with IPTV are big
       Other                           and costly. Content distribution networks require high level of expertise to manage, which is not
                                       easy to find
   Infrastructure                    • It requires expensive servers/equipment/software solutions to provide IPTV services. With the
     problems                          subscriber numbers expected to be low, it looks like a risky proposition


Source: Knowledgefaber research and analysis                                                                         Knowledgefaber
Broadband
                                                                                                                           penetration
Broadband penetration in India compared to global                                                                            and n/w
                                                                                                                            capability
Scenario is very low




                                                                                                         Broadband penetration
                                                                                                           in India is one of the
                                                                                                            lowest in the world.
                                                                                                             IPTV’s success is
                                                                                                          directly dependant on
                                                                                                              that. Broadband
                                                                                                          penetration needs to
                                                                                                          grow at a much faster
                                                                                                           pace. Maybe VDSL,
                                                                                                            WiMAX or LTE can
                                                                                                         save the day for IPTV?




Source: Knowledgefaber research and analysis, CIA world fact book, OECD, TRAI, Broadband world forum, Cisco, Point Topic
                                                                                                                       Knowledgefaber
Broadband
IPTV requires at least 1.5 Mbps line (with MPEG-4) for                                                                             penetration
 basic services at a good QOS and 8 Mbps line (with                                                                                  and n/w
                                                                                                                                    capability
 MPEG-4) for HDTV services. Some part of the
 broadband networks in India are not ready yet
                                                                                                                                            T4 – 274 Mbps

                                                                                                                                     OC3 – 155 Mbps
                                                                                                                               100 Mbps

                                 IPTV needs 1.5
                                 Mbps* speed for                                                                T3 – 45 Mbps
                                  basic services                                                        E3 – 34.368 Mbps
                                    like SDTV
                                     channels                                              Ethernet – 10 Mbps
                                 broadcasting…                                      T2 – 6.312 Mbps
                                                                             Cable Modem – 4 Mbps

                                                                  E1 - 2.048 Mbps
                                                            DSL/T1 - 1500 kbps
                                                                                                    …and requires 8
                                                   1 Mbps
                                                                                                    Mbps* for HDTV
                                                                                                       services
                                     Satellite - 400 kbps


                        ISDN - 128 kbps
                     100 kbps
                                                                                                                Kbps = 1000 bits/second
              V 92 modem - 56 kbps                                                                              Mbps = 1000000 bits/second
        28.8 modem - 28.8 kbps
  14.4 modem - 14.4 kbps




Note: *with MPEG-4 compression technology
Source: Knowledgefaber research and analysis
                                                                                                                                Knowledgefaber
Regulatory
Following are the requirements from the regulatory side                                     framework

that will help IPTV’s growth in India

 IPTV market would require the following from the regulatory standpoint Status (WIP/Cleared)
 Storage and replay of IPTV content without any editing or modification
 should be allowed and defined as a part of the IPTV transmission. Time shift           WIP
 TV is a big advantage of IPTV
 All broadcast channels from all sources must participate on IPTV platform
                                                                                      Cleared
 (similar to DTH)
 Amendments to down-linking rules to include IPTV as a form of distribution
                                                                                      Cleared
 as it is the case with the DTH and cable television.
 Pricing and revenue sharing should be defined and mandated for IPTV at
 each step. It should be done for all the parties involved such as Broadcaster,
 Content aggregator/Content Delivery Network (CDN) and the Telecom                      WIP
 Operator/others. Similar Pricing and revenue sharing mandate exists for
 cable CAS
 Purchase of content for IPTV should come under the Copyright Act 1957.
 IPTV needs to be defined and provisioned for legitimate usage of copyright
 under this act. Premium content is expensive and is also one of the                    WIP
 opportunities for IPTV. In order to invest in procuring copyright of such
 content, stable well defined regulations are a precursor.
 Internet content will be a part of IPTV on both computer and TV. Regulation
 of Internet content should be within the scope of prevailing Internet                  WIP
 regulations.

                                                                                          Knowledgefaber
Content
                                                                                                          readiness & Cost

Content poses challenge and opportunities as well
•   With respect to content there are various costs which are involved and it totally depends on what route does the
    player take:
    - Fixed fee deal with the broadcaster - works in case telcos are extremely sure of the subscriber ramp up. With
    IPTV, telcos are not sure of that
    - Ala carte price per channel

•   Content cost which is aside of linear channel-- and this is the differentiating part. Worldwide for mature IPTV
    operators in Europe and satellite TV operators in USA and Australia, the revenue from these services already
    account for 15-18%. Also, the gross margin is extremely high for these services, sometimes to the tune of 30-40%
    which is quite contrary to what you get in the linear channel which is around 5-10%

•   Opportunity – The case where Belgacom outbid cable and TV companies for the rights to broadcast Belgian
    football, paying about 36 Million Euros a year for three years. The case in point are the exclusive rights to a major
    sporting events or other events such as Film awards or celebrity tours. Exclusive TV content like IPL or other
    cricket tournaments can be game-changers for IPTV players. There are two main models of telco access to
    exclusive TV content: buy the full rights, or “sublet” from a right-owner. But the challenge is that as more telcos
    seek exclusive content to make their TV offering relevant, the value of content is set to appreciate even further.

•   IPTV players require something similar to what DTH players enjoy today through lobbying and petitions. Tariff
    regulation at the wholesale level - between the broadcasters and the DTH operators - has already happened with
    the rule that DTH operators had to pay only 50% of what CAS and cable operators were paying to broadcasters
    for content. So while CAS operators have to pay Rs 5 to broadcasters per channel, DTH companies pay Rs 2.5.




                                                                                                          Knowledgefaber
Will the
Cost per line for IPTV is high and the number of                                                    companies
                                                                                                   make or lose
subscribers are still very low; break-even might take                                                money?
several years but telcos would go for it
•   The cost per line for providing IPTV services for a Telco is in the range of $1000 to $2000 per
    user. Main components of cost being Access and head-end technology, Transport network and
    technology, Software & video platform technology.
•   For players with a network in place (all top telcos in India), cost per line would be in the range of
    $1000
•   The cost of setting up is high for a brand-new rollout and is in the range of $2000 for a green field
    operation
•   Since the number of subscribers are going to be low, telcos need to provide aggressive pricing, to
    increase penetration. But currently, the pricing w.r.t customer i.e. cost/ MB delivered is several
    times of that in Europe and that is precisely because of the high infrastructure cost, bandwidth (
    national + international ) cost. The high prices will hinder penetration
•   The ROI is going to be pick up only slowly and the break-even would take several years (say 6 to
    10 years). Still, it makes sense for the telecom players to diversify to triple play of voice, data and
    video so as to ensure new revenue streams and ensure return on investment on their fixed lines
•   Also as the voice ARPUs are suffering, IPTV would make a lot of sense going forward
•   IPTV ARPUs for PCCW had grown at a rate of about 30% (NOW TV's ARPU in June 2008 grew
    by 28% from a year ago to HK$213) while satellite TV ARPUs for US providers such as DirecTV
    had grown at a rate of just 2%-4%. This can be seen as a positive point by the telcos in India
•   At least a 6-7 years time is expected for a telco to do break-even. Those who are able to do it
    sooner would be real winners



                                                                                              Knowledgefaber
IPTV Globally and in India
IPTV India Dynamics
IPTV Readiness and Challenges
IPTV Subscriber Base Growth and Opportunity




                                              Knowledgefaber
Growth of IPTV depends upon broadband
subscriptions growth…




                                                Verified by various
                                                 sources such as
                                                 Assocham (30.1
                                                 million by 2013)




Source: Knowledgefaber Research and Analysis


                                               Knowledgefaber
What are the
                                                                                                     subscriber
…and IPTV penetration within broadband subscribers.                                                 numbers and
                                                                                                    projections?
Next 5 years will see tremendous boom in the market

                                                                                               3500

                                                             Scenario 2 – Broadband
                                                             subscriber base sky-
                                                             rockets and major push          7.00
                                                             for IPTV from Telcos
                         IPTV penetration (in
                            percentage)
                                                                                      5.16



                                                                        3.71

                                                      2.67
                          0.45                 1.92




Source: Knowledgefaber Research and Analysis
                                                                                             Knowledgefaber
India IPTV status is “Not OK” as of now, and the progress is slow
with positive outlook reflected by entry of new players


                                                                                                        Time Expected to reach
                                                                                     Status 2009       atleast next level of Status
                                  Categories
                                                                                 (Great, OK, Not OK)      (Short, Medium, Long
                                                                                                                 Period))


      Content readiness and cost                                                       Not OK                    Medium
      Unified standards development                                                    Not OK                    Medium
      Pricing and Promotions                                                           Not OK                     Short
      Capability of expected leaders                                                    OK                    Medium/Long
      Favorable Regulations                                                            Not OK                      Long
      Customer understanding of product proposition                                    Not OK                 Short/Medium
      Access and head-end technology                                                    OK                       Medium
      Set-top box technology                                                           Great                        --
      Broadband/transport infrastructure and technology                                Not OK                      Long
      Software & Video platform technology                                             Great                         --



      Note: Short period is about <2 years while Long period is about >4 years




Source: Knowledgefaber Research and Analysis

                                                                                                                     Knowledgefaber
Recommendations
• On demand – Please contact us!




                                   Knowledgefaber
Appendix



           Knowledgefaber
Knowledgefaber research in the IPTV goes beyond this report



•   Entire demand and supply side dynamics and market analysis
•   Studying all the tie-ups, technology partnerships, deals in India
    across the IPTV value-chain
•   Deeper value chain analysis with profit pool analysis
•   Detailed ROI and break-even analysis
•   Successful case studies from France, Hong Kong, Taiwan, Korea,
    US, Belgium, etc.
•   Trends in technology, regulatory, market, and customers
•   Customer preferences and opinions in terms of cost, prices, usage,
    QOS feedback, etc.

    If you have a research or consulting requirement in the IPTV area or
    other Telecom subject, please contact us for a discussion at:
    relationship@knowledgefaber.com or call us at 91-80-41231576

                                                                    Knowledgefaber
What is IPTV?


•   Internet Protocol Television (IPTV) is the delivery of broadcast-quality
    television and/or video signals to subscribers. This is done over a
    broadband connection using the Internet Protocol
•   While IP stands for Internet Protocol, this does not actually mean that
    television content is streaming over the Internet. IP is simply the same
    method, protocol or technology that enables you to access the Internet. IP-
    delivered television content is delivered using this technology. IPTV, unlike
    Internet TV, is primarily a TV experience rather than a PC experience and is
    meant as an alternative to cable and satellite
•   IPTV operates on a premise that's different from traditional satellite or cable
    television. In IPTV only selected programming and on-demand content are
    delivered to the consumer, while on satellite and cable, all channels are
    being pushed all the time to the consumer's home.
•   IPTV's ability to provide two-way communication (you request a programme
    from the TV guide and the programme is delivered to you) offers interactivity
    for the customer. Movies, past TV shows and other content can be
    distributed on demand, and service providers can tailor the requested
    content and advertising based on the customer's preferences
                                                                        Knowledgefaber
IPTV system at a glance


Content Sources                                         Content Access Equipment
   Content Creation
                                    Decoder +
 Content Broadcasting                                                                      Billing / SMS
                                    Streamer
                                                              CAS,
 Content Transmission
                                                          IP-Scrambler
                                                                                           Middleware
                                 VoD / nVoD Servers



                                                                         IP Network with
                                                                          IGMP Support


Subscribers

 TV Viewers             IP-STB             xDSL Modem         DSLAM                    Ethernet Switch




 TV Viewers             IP-STB                                                    PC Users         PC Users




                                                                                             Knowledgefaber
Typical bandwidth requirements for IPTV




                                          Knowledgefaber
Service provisioning quad play; Consumer market segments




                User




                       INR 1500
                       per month




                                                    Knowledgefaber
DSL constitutes majority of the market share for the broadband
market in India

     Market Share Break-up of Broadband Subscriber Base
                     By Technology (2007)
                                                                            Service Description
                                                                         • DSL technology uses the infrastructure of
                                                          Digital          existing copper telephone infrastructure to
                                                                           facilitate high-speed data connections
                                                          Subscriber     • DSL uses high frequency, while regular
                                                          Line (DSL)       telephone uses low frequency on the same
                                                                           telephone line
                                                                         • A cable modem is a type of modem that
                                                                           provides access to a data signal sent over cable
                                                                           television.
                                                          Cable
                                                                         • These are primarily used to deliver broadband
                                                          Modem            Internet access in the form of cable internet,
                                                                           taking advantage of the high bandwidth of cable
                                                                           television network

                                                                         • Ethernet is a family of frame-based computer
                                                          Ethernet LAN     networking technologies for local area networks

                                                                         • An audio broadcasting service transmitted via
                                                          Radio            the Internet (streaming technology)

                                                                         • Optical fibers permit transmission over longer
                                                                           distances and at higher data rates than other
                                                          Fibre            forms of communications
                                                                         • Fibers are used instead of metal wires because
                                                                           signals travel along them with less loss



Note: Subscriber base shares are for Sep 2007
Source: TRAI
                                                                                                        Knowledgefaber
Abbreviations


•   DSL (Digital Subscriber Line): DSL or xDSL, is a family of technologies that provides digital data transmission over
    the wires of a local telephone network
•   VoD = Video on Demand
•   MoD = Movie on Demand
•   SDTV = Standard Definition TV
•   CDN = A content delivery network or content distribution network (CDN) is a system of computers networked
    together across the Internet that cooperate transparently to deliver content to end users, most often for the
    purpose of improving performance, scalability, and cost efficiency.
•   DTH = Direct broadcast satellite (DBS) is a term used to refer to satellite television broadcasts intended for home
    reception, also referred to more broadly as direct-to-home signals.
•   RoW = A situation in which although a parcel of land has a specific private owner, some other party or the public at
    large has a legal right to traverse that land in some specified manner.




                                                                                                        Knowledgefaber
Knowledgefaber


Introduction to Knowledgefaber




                                 Knowledgefaber
Knowledgefaber wants to be a preferred research, analysis,
analytics and consulting firm for companies globally
   Particulars                                          Description

                    Knowledgefaber is a rapidly growing organization based out of Bangalore,
                    India. It specializes in customized market research, analysis, data analytics, and research
                    based problem solving/consulting
   Who we are?
                    It is founded by individuals experienced in delivering research/consulting solutions for
                    both global and Indian clients




                    We create knowledge for our clients that helps them in decision making at various levels in their
                     organization and across functions such as Corporate Planning, R&D, Marketing & Sales, others.
  What do we do?    We bring to the table a combination of business domain knowledge and research skills
                    Flexible consulting models (onsite/offsite) to deliver cost-effective and high-quality solutions,




                    Knowledge advantage over competitors, speedy response, action oriented
                    results and lower costs
                    Practical expertise and not only academic/bookish knowledge in the industries
     Benefits       We cover Knowledge re-utilization from one industry to another so that best practices
                    identified once can be used elsewhere




                                                                                                   Knowledgefaber
Knowledgfaber at a glance



Telecom (Equipment,                                                                                             Companies in the
Wireline/Wireless                                                                                               field of Hi-tech,
Services, Software,                                                                                             Telecom,
Content, in short A to          Verticals                                                       Clients         Software/IT/ITeS,
Z of telecom)                                                                                                   others
IT/ITeS/BPO/Software                                                                                            Big 5 consulting
Media/Entertainment/                                                              Functional experience         firms
                                        Coverage of several
Advertising                                                                      working with consulting
                                             verticals
                                                                               firms and client experience
                                                                                 working with companies


                                                              Knowledgefaber


                                                                           A rich mix of engineers and
                                       Research, Analysis and
                                                                            MBAs provide diversified
                                            consulting
 Industry and Market                                                                skill-sets
 Analysis                                                                                                       Indian Institute of
                                                                                                                Technology
 Demand estimation
 and forecasting         Functional Capabilities                                                People          Indian Institute of
                                                                                                                Management
 Client Acquisition
 consulting                                                                                                     Regional
                                                                                                                Engineering
 Outsourcing/Offshori-
                                                                                                                Colleges
 ng Studies
                                                                                                                Tier 1 MBA colleges
 Talent Pool Analysis
 Others



                                                                                                             Knowledgefaber
Project approach/methodology of Knowledgefaber


                                            Approach/Methodology


                   Stage 1                          Stage 2                       Stage 3                  Stage 4




 Data from secondary research              Data cleaning,
                                                                                                              Final
                                           structuring and               Problem solving
 Data from Primary Research                                                                            Recommendations –
                                               analysis
                                                                                                        Actionable results
                                                                                                          Data Modeler
                                                                                                        Powerpoint Report


          Data from secondary             Storyline is developed for    Grasp on business
          research including various      structuring the analysis      fundamentals
          websites, online journals,      Data Modeler is prepared in   Research Inputs
          magazines, and databases.       MS excel for data             Consultants have
          Interviews with                 presentations and views       experience of working on
          vendors/suppliers,                                            hundreds of projects on
          manufacturers, service                                        customized requirements
          providers, others                                             Experience of successfully
          Interviews with industry                                      executing projects with
          thought leaders, consultants,                                 complex data requirements
          academia and industry                                         Knowledgefaber network in
          bodies                                                        across the industries
                                                                        covered
                                                                                                     Knowledgefaber

Contenu connexe

Tendances

Introduction to IPTV
Introduction to IPTVIntroduction to IPTV
Introduction to IPTViptvmagazine
 
Iptv.Ppt
Iptv.PptIptv.Ppt
Iptv.Pptuzukhan
 
OTT Streaming Services
OTT Streaming ServicesOTT Streaming Services
OTT Streaming ServicesBrenda Bell
 
The 4G LTE Auction in Thailand
The 4G LTE Auction in ThailandThe 4G LTE Auction in Thailand
The 4G LTE Auction in ThailandYOZZO
 
Challenges in iptv technologies(nnm)
Challenges in iptv technologies(nnm)Challenges in iptv technologies(nnm)
Challenges in iptv technologies(nnm)nnmaurya
 
China Telecom: IPTV - Connected Life Experiences at Home
China Telecom: IPTV - Connected Life Experiences at HomeChina Telecom: IPTV - Connected Life Experiences at Home
China Telecom: IPTV - Connected Life Experiences at HomeCisco Service Provider
 
US Market Transitions In Consumer Video
US Market Transitions In Consumer VideoUS Market Transitions In Consumer Video
US Market Transitions In Consumer VideoDimitri Popov
 
3G in Bangladesh: Points to ponder
3G in Bangladesh: Points to ponder3G in Bangladesh: Points to ponder
3G in Bangladesh: Points to ponderAbu Saeed Khan
 
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...Feriandi Mirza
 
OTT & IPTV An analysis presentation from ordering & billing perspective
OTT & IPTV An analysis presentation from ordering & billing perspectiveOTT & IPTV An analysis presentation from ordering & billing perspective
OTT & IPTV An analysis presentation from ordering & billing perspectiveBiju M R
 
Spectrum pricing, make or break the 5 g momentum, June 2019
Spectrum pricing, make or break the 5 g momentum, June 2019Spectrum pricing, make or break the 5 g momentum, June 2019
Spectrum pricing, make or break the 5 g momentum, June 2019Coleago Consulting
 
Cedarcom views on true Broadband Lebanon and how to get there
Cedarcom views on true Broadband Lebanon and how to get thereCedarcom views on true Broadband Lebanon and how to get there
Cedarcom views on true Broadband Lebanon and how to get thereCedarcom News
 
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...YOZZO
 
Introduction to Telco-OTT Services
Introduction to Telco-OTT ServicesIntroduction to Telco-OTT Services
Introduction to Telco-OTT ServicesMartin Geddes
 
Hybrid digital broadcasting methods
Hybrid digital broadcasting methodsHybrid digital broadcasting methods
Hybrid digital broadcasting methodsfungfung Chen
 
5 g and 3.5 g hz spectrum valuation
5 g and 3.5 g hz spectrum valuation5 g and 3.5 g hz spectrum valuation
5 g and 3.5 g hz spectrum valuationColeago Consulting
 

Tendances (20)

Iptv2
Iptv2Iptv2
Iptv2
 
Introduction to IPTV
Introduction to IPTVIntroduction to IPTV
Introduction to IPTV
 
TELKOM IPTV
TELKOM IPTVTELKOM IPTV
TELKOM IPTV
 
Iptv.Ppt
Iptv.PptIptv.Ppt
Iptv.Ppt
 
NBTC over view
NBTC over viewNBTC over view
NBTC over view
 
OTT Streaming Services
OTT Streaming ServicesOTT Streaming Services
OTT Streaming Services
 
The 4G LTE Auction in Thailand
The 4G LTE Auction in ThailandThe 4G LTE Auction in Thailand
The 4G LTE Auction in Thailand
 
Challenges in iptv technologies(nnm)
Challenges in iptv technologies(nnm)Challenges in iptv technologies(nnm)
Challenges in iptv technologies(nnm)
 
Ott anintro
Ott anintroOtt anintro
Ott anintro
 
China Telecom: IPTV - Connected Life Experiences at Home
China Telecom: IPTV - Connected Life Experiences at HomeChina Telecom: IPTV - Connected Life Experiences at Home
China Telecom: IPTV - Connected Life Experiences at Home
 
US Market Transitions In Consumer Video
US Market Transitions In Consumer VideoUS Market Transitions In Consumer Video
US Market Transitions In Consumer Video
 
3G in Bangladesh: Points to ponder
3G in Bangladesh: Points to ponder3G in Bangladesh: Points to ponder
3G in Bangladesh: Points to ponder
 
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...
Roadmap for the Transition from Analogue to Digital Terrestrial Television Br...
 
OTT & IPTV An analysis presentation from ordering & billing perspective
OTT & IPTV An analysis presentation from ordering & billing perspectiveOTT & IPTV An analysis presentation from ordering & billing perspective
OTT & IPTV An analysis presentation from ordering & billing perspective
 
Spectrum pricing, make or break the 5 g momentum, June 2019
Spectrum pricing, make or break the 5 g momentum, June 2019Spectrum pricing, make or break the 5 g momentum, June 2019
Spectrum pricing, make or break the 5 g momentum, June 2019
 
Cedarcom views on true Broadband Lebanon and how to get there
Cedarcom views on true Broadband Lebanon and how to get thereCedarcom views on true Broadband Lebanon and how to get there
Cedarcom views on true Broadband Lebanon and how to get there
 
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...
CONNECTING THAILAND'S DIGITAL ECONOMY | Unused Spectrum Capacity, MVNOs and D...
 
Introduction to Telco-OTT Services
Introduction to Telco-OTT ServicesIntroduction to Telco-OTT Services
Introduction to Telco-OTT Services
 
Hybrid digital broadcasting methods
Hybrid digital broadcasting methodsHybrid digital broadcasting methods
Hybrid digital broadcasting methods
 
5 g and 3.5 g hz spectrum valuation
5 g and 3.5 g hz spectrum valuation5 g and 3.5 g hz spectrum valuation
5 g and 3.5 g hz spectrum valuation
 

En vedette (20)

38835552 capital-market
38835552 capital-market38835552 capital-market
38835552 capital-market
 
Iptv report
Iptv reportIptv report
Iptv report
 
project loon
project loonproject loon
project loon
 
Chitti%2027
Chitti%2027Chitti%2027
Chitti%2027
 
Smart card technology
Smart card technologySmart card technology
Smart card technology
 
Iptv
IptvIptv
Iptv
 
Basics of IPTV
Basics of IPTVBasics of IPTV
Basics of IPTV
 
IPTV Basics
IPTV BasicsIPTV Basics
IPTV Basics
 
Smart card technology
Smart card technologySmart card technology
Smart card technology
 
Project loon of google
Project loon of googleProject loon of google
Project loon of google
 
Smart card
Smart cardSmart card
Smart card
 
Spintronics Report
Spintronics  ReportSpintronics  Report
Spintronics Report
 
Project loon-(A balloon powered internet for all)
Project loon-(A balloon powered internet for all)Project loon-(A balloon powered internet for all)
Project loon-(A balloon powered internet for all)
 
Mobile Tv
Mobile TvMobile Tv
Mobile Tv
 
Spintronics report
Spintronics reportSpintronics report
Spintronics report
 
GOOGLE BALLOON
GOOGLE BALLOONGOOGLE BALLOON
GOOGLE BALLOON
 
Google project loon
Google project loonGoogle project loon
Google project loon
 
Google loon
Google loonGoogle loon
Google loon
 
Smart card technology
Smart card technologySmart card technology
Smart card technology
 
Smart cards
Smart cards Smart cards
Smart cards
 

Similaire à IPTV India Progress Report 2009 by Knowledgefaber - Market Analysis

Iptv White Paper June08 (MOCA)
Iptv White Paper June08 (MOCA)Iptv White Paper June08 (MOCA)
Iptv White Paper June08 (MOCA)Gonzalo Martín
 
Exclusive content cross-carriage obligation in Singapore: an innovative inter...
Exclusive content cross-carriage obligation in Singapore: an innovative inter...Exclusive content cross-carriage obligation in Singapore: an innovative inter...
Exclusive content cross-carriage obligation in Singapore: an innovative inter...Value Partners
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scopeNeak Ali
 
8 investor preztemplate32a
8 investor preztemplate32a8 investor preztemplate32a
8 investor preztemplate32aNat Pham
 
Internet protocol television market
Internet protocol television marketInternet protocol television market
Internet protocol television marketRenukaAvasti
 
Telletopia Press Release Nov. 9 2015
Telletopia Press Release Nov. 9 2015Telletopia Press Release Nov. 9 2015
Telletopia Press Release Nov. 9 2015Jackson Blake
 
Iptv by gunjan negi
Iptv by gunjan negiIptv by gunjan negi
Iptv by gunjan negiGunjanN
 
UK Telecoms & TV June 2012
UK Telecoms & TV June 2012UK Telecoms & TV June 2012
UK Telecoms & TV June 2012Jonathan Lishawa
 
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docx
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docxExploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docx
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docxXtreame HDTV
 
IPTV Service Revolutionising Television Broadcasting.pdf
IPTV Service Revolutionising Television Broadcasting.pdfIPTV Service Revolutionising Television Broadcasting.pdf
IPTV Service Revolutionising Television Broadcasting.pdfSimbaOTT
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scopeNeak Ali
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scopeNeak Ali
 
Media Trends Q4 2010
Media Trends Q4 2010Media Trends Q4 2010
Media Trends Q4 2010ASTRA
 
ASTRA Media Trends Report Q2 2012
ASTRA Media Trends Report Q2 2012ASTRA Media Trends Report Q2 2012
ASTRA Media Trends Report Q2 2012ASTRA
 
The future of european video on demand is tv based
The future of european video on demand is tv basedThe future of european video on demand is tv based
The future of european video on demand is tv basedPietro Lambert
 
Keynote orange telmo_perez
Keynote orange telmo_perezKeynote orange telmo_perez
Keynote orange telmo_perezRob Blaauboer
 
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving Landscape
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving LandscapeExploring IPTV Trends: A Comprehensive Analysis of the Evolving Landscape
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving LandscapeXtreamehdtv
 
New Media and Propaganda @ Strategic Intelligence Studies
New Media and Propaganda @ Strategic Intelligence StudiesNew Media and Propaganda @ Strategic Intelligence Studies
New Media and Propaganda @ Strategic Intelligence StudiesArief Gunawan
 

Similaire à IPTV India Progress Report 2009 by Knowledgefaber - Market Analysis (20)

Iptv White Paper June08 (MOCA)
Iptv White Paper June08 (MOCA)Iptv White Paper June08 (MOCA)
Iptv White Paper June08 (MOCA)
 
Exclusive content cross-carriage obligation in Singapore: an innovative inter...
Exclusive content cross-carriage obligation in Singapore: an innovative inter...Exclusive content cross-carriage obligation in Singapore: an innovative inter...
Exclusive content cross-carriage obligation in Singapore: an innovative inter...
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scope
 
8 investor preztemplate32a
8 investor preztemplate32a8 investor preztemplate32a
8 investor preztemplate32a
 
Ott.and.operators
Ott.and.operatorsOtt.and.operators
Ott.and.operators
 
Internet TV
Internet TVInternet TV
Internet TV
 
Internet protocol television market
Internet protocol television marketInternet protocol television market
Internet protocol television market
 
Telletopia Press Release Nov. 9 2015
Telletopia Press Release Nov. 9 2015Telletopia Press Release Nov. 9 2015
Telletopia Press Release Nov. 9 2015
 
Iptv by gunjan negi
Iptv by gunjan negiIptv by gunjan negi
Iptv by gunjan negi
 
UK Telecoms & TV June 2012
UK Telecoms & TV June 2012UK Telecoms & TV June 2012
UK Telecoms & TV June 2012
 
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docx
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docxExploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docx
Exploring the Evolution and Impact of IPTV in USA- A Comprehensive Analysis.docx
 
IPTV Service Revolutionising Television Broadcasting.pdf
IPTV Service Revolutionising Television Broadcasting.pdfIPTV Service Revolutionising Television Broadcasting.pdf
IPTV Service Revolutionising Television Broadcasting.pdf
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scope
 
Cable tv & direct to home television scope
Cable tv & direct to home television scopeCable tv & direct to home television scope
Cable tv & direct to home television scope
 
Media Trends Q4 2010
Media Trends Q4 2010Media Trends Q4 2010
Media Trends Q4 2010
 
ASTRA Media Trends Report Q2 2012
ASTRA Media Trends Report Q2 2012ASTRA Media Trends Report Q2 2012
ASTRA Media Trends Report Q2 2012
 
The future of european video on demand is tv based
The future of european video on demand is tv basedThe future of european video on demand is tv based
The future of european video on demand is tv based
 
Keynote orange telmo_perez
Keynote orange telmo_perezKeynote orange telmo_perez
Keynote orange telmo_perez
 
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving Landscape
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving LandscapeExploring IPTV Trends: A Comprehensive Analysis of the Evolving Landscape
Exploring IPTV Trends: A Comprehensive Analysis of the Evolving Landscape
 
New Media and Propaganda @ Strategic Intelligence Studies
New Media and Propaganda @ Strategic Intelligence StudiesNew Media and Propaganda @ Strategic Intelligence Studies
New Media and Propaganda @ Strategic Intelligence Studies
 

IPTV India Progress Report 2009 by Knowledgefaber - Market Analysis

  • 1. IPTV India Progress Report By Knowledgefaber Published: April, 2009 Knowledgefaber
  • 2. Access content on home TV from relatives, friends…peer to Interactive peer downloads gaming Broadcast video IPTV Services Skip Advertising Knowledgefaber
  • 3. Research Methodology • Knowledgefaber researchers have been tracking the IPTV space in India and globally on an ongoing basis • Numerous Interviews (primary research) with key industry participants from Telcos, equipment providers, technology providers in India • Interviews with experts from around the world who had experience of IPTV deployments and service provisioning • Secondary research including but not limited to annual reports, company websites, journals, magazines, literature shared by participants, web search Disclaimer: Information contained in the report has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Neither Knowledgefaber or its affiliates, officers, directors, employees, owners, representatives nor any of its data or content providers shall be liable for any errors or for any actions taken in reliance thereon Knowledgefaber
  • 4. IPTV Globally and in India IPTV India Dynamics IPTV Readiness and Challenges IPTV Subscriber Base Growth and Opportunity Knowledgefaber
  • 5. Global IPTV market has been growing rapidly since last 3 to 4 years The term IPTV was First Commercial In September 2003, It was projected that At the end of 2008 first used in 1995 by Deployment: Kingston PCCW, Hong Kong’s number of subscribers global IPTV subscriber a company called Communications, a incumbent fixed-line will grow from 3.7 million was 23 million and Precept Software. regional operator, became one of subscribers in 2005 to revenue was around Precept designed telecommunications the first wireline 36.9 million in 2009 that $5.9 billion as per and built an internet operator in UK, operators in the world to didn’t happen industry estimates video product launched Kingston launch an IPTV service named "IP/TV". Interactive Television, an IPTV over DSL in1999 Source: Knowledgefaber analysis, estimates by various research firms Knowledgefaber
  • 6. Hong Kong, France, Taiwan and Belgium are leading the pack in terms of penetration Global Top 10 IPTV Markets, by Penetration (2009) Highlights 55.21% • Hong Kong is leading in penetration level while France is leading in terms of 30.03% subscribers. 10.88% 9.88% 6.43% • There are currently around a hundred and twenty IPTV providers in over sixty countries, with Europe and the far eastern 3.98% markets taking the top spots. 3.90% 2.35% • In addition, main broadcasters in UK like the iPlayer from the BBC provide online 1.13% catch up* services and Channel Four provide VoD services. 0.74% Note: Penetration is defined as % of IPTV subscriber among Broadband users. *Online catch-up service allows viewers to catch up (watch) on BBC telly missed in the week Source: Informa Telecoms and media Knowledgefaber
  • 7. Hong Kong’s PCCW has shown the way to succeed in IPTV through its NOW TV… Turning Free TV into Money Maker Strong Infrastructure to Support IPTV • PCCW, the incumbent carrier in Hong Kong launched its IPTV back in 2003, providing • PCCW reports that 93 percent of households broadband customers with a set-top box and in Hong Kong experience 6 Mbps of 23 TV channels as a starter pack all for free downstream speed on its ADSL network. under the name NOW TV. • PCCW now delivers more than 160 channels • Later It secured some unique content -- to its customers over VDSL and fiber-to-the- namely, English Premiership soccer -- and home (FTTH) broadband connections. developed some IPTV channels of its own, including multiple sports channels and a business news service. • PCCW’s exclusive offerings forced end-users interested in such content to subscribe to PCCW Attaining Dual Benefits NOW TV, thereby turning a free TV into money maker. • As intended, NOW TV has made PCCW’s broadband service more attractive. • Additionally, since the introduction of NOW TV, customer loss has halved to less than 1 Significant Growth over the Years percent, clearly indicating increased loyalty levels, thus ensuring continued revenues for broadband while gaining additional revenues • From 361,000 subscribers at end of 2004, through IPTV. PCCW’s IPTV subscriber base grew to 932,000 by the end of September 2008, of which 668,000 pay monthly fees to buy additional channels or IPTV packages. By pulling together an impressive and exclusive list of content along with supporting advanced infrastructure, PCCW has become the world’s largest IPTV provider Source: Industry Interview, Pyramid research, Industry reports Knowledgefaber
  • 8. What is happening in India • Early movers in this field are BSNL and MTNL. MTNL rolled out it's IPTV service in Mumbai on Oct-2006 marking the first IPTV deployment in India • Bharti Airtel and Reliance Communications were given the go ahead to launch their IPTV services in the Indian market in Feb-2008 by TRAI • Airtel has launched its service in Jan-2009 while Reliance is still testing its services • Drivers – – Interactivity – Value added services – Customer-end benefit – Fuelling broadband demand • Inhibitors– – Broadband penetration and n/w capability – QOS (Quality of service) – Content Readiness and cost – Cost of service for user – Regulatory framework – Other infrastructural problems Source: Knowledgefaber research and analysis Knowledgefaber
  • 9. IPTV Service Providers in India Company Description Product/ Services Tie-Ups/Partnership (only illustrative list given here) BSNL • BSNL has been offering • Company is providing triple play • Aksh Optifibre, Cable and optical fibre manufacturer has IPTV services in several service featuring telephone, collaboration with state-run Bharat Sanchar Nigam Limited cities of India, some of broadband internet and TV (BSNL) for delivery of Interactive Personalized Television these includes Kolkata, • Additional services like pause, (IPTV) on its broadband network in the north Indian Market Bangalore, Ahmedabad, fast forward VOD(video on- • IOL Broadband (India on Line Broadband) has a tie up with Gurgaon, Jaipur, demand) (BSNL) for Internet Protocol television (IPTV) services to Chandigarh, etc BSNL subscribers • BSNL Kolkata started • Smart Digivision has a contract with BSNL to provide IPTV its services in Aug-07 services to its customers in 53 cities • Verimatrix, a provider of content security technology solutions for pay-TV networks, has announced that it is providing Verimatrix Video Content Authority System (VCAS) for IPTV ( News - Alert) to protect IPTV services to Bharat Sanchar Nigam Limited (BSNL) customers MTNL • MTNL is offering IPTV • Triple play services including • MTNL and IOL Broadband are in IPTV deal, in which IOL will services in Mumbai and telephone, Broadband internet, provide IPTV content to broadband subscriber of MTNL Delhi so far and TV is provided • Aksh has a agreement with MTNL to provide IPTV • IPTV services in Delhi • Video on Demand and other broadband content services to MTNL subscribers in Delhi started in Oct-06 vale added services are and Mumbai available Bharti- • In its first phase Bharti- • Company is offering triple play • IBM provides software and IT requirements for Bharti Airtel' Airtel Airtel has started advantage of telephony, non-mobile businesses which include Direct to Home (DTH), providing IPTV services broadband and TV. Company is Internet Protocol TV (IPTV), to customers of NCR also giving services like Video- enterprise services and broadband (Delhi, Gurgaon, and on-Demand, Time shift TV, and • UTStarcom has a contract with Bharti Airtel to supply its Noida) interactive 2.0 (includes options RollingStream end-to-end IPTV solution • Bharti Airtel started its like freedom of ordering pizzas services in Jan-2000 and movie tickets from TV set) Reliance • IPTV services of • Triple play services • Reliance Communications Ltd. and Microsoft Corp. has a Reliance are under test • Real-time Video-on-Demand, partnership to deliver Reliance’s Internet Protocol Television and expected to be High definition, subtitling and (IPTV) service, which is powered by the Microsoft launched soon audio language choice, Digital Mediaroom IPTV software platform commercially video recording, etc. Knowledgefaber
  • 10. Most of the IPTV market in India is still in Stage 1 Stage 1 Stage 2 Stage 3 Underlying DSL, ADSL Infrastructure and ADSL2+ Services offered SD TV channels, some VAS, QOS satisfactory Compression MPEG-2, Technology MPEG-4 Players (Country): MTNL, BSNL (India), Airtel (India) Underlying ADSL2+, VDSL Infrastructure Underlying Fibre, possibly Infrastructure WiMAX, LTE Services offered Triple play with good QOS, HD Services offered HD TV, Whole TV, serve homes Home DVR with multiple TV, DVR Compression MPEG-4 and Technology Possibly Compression MPEG-4 MPEG-7 Technology Players: PCCW (Hong Kong), AT&T (USA), Verizon (USA) Source: Industry interview and News reports Knowledgefaber
  • 11. IPTV Globally and in India IPTV India Dynamics IPTV Readiness and Challenges IPTV Subscriber Base Growth and Opportunity Knowledgefaber
  • 12. IPTV value-chain in India Equipment and Technology Network and Service Provisioning Customer Subscribes Sub- Equipment Software contracts Franchisee/Third Subscrib Players /Hardware Systems & Telcos Owner Revenue Party Provider es Systems Others Sharing Broadcaster, content creator • Video Headend • IPTV middleware • Copper wire and DSL • Content Aggregation, • Decoder + Streamer (homegrown systems technology network Content Distribution • VoD / nVoD Servers have seen in the case • Content sourcing Network, Content • Switches of many global • Procures hardware and Sourcing • DSLAM carriers) software • Technology deployment • IP-STB • Digital rights • Uses Telcos DSL Roles • xDSL Modem management (DRM) network for service technology provisioning • Content Related s/w • Branding, and packaging • Buys Set-top box • Branding, and • IP-STB • Billing • Installation • Buys IPTV Packages packaging • xDSL Modem • Service monitoring • Service Provisioning • Pulls content and • Installation and network probes • Billing advertisement • Customer support • CAS, IP-Scrambler • Customer support • Tech geek, subscribes to • Alcatel-Lucent, • Microsoft, UTStarcom • MTNL • Aksh Optifibre Ltd. Example every new technology Ericsson AB, Nokia • Digisoft, Envivio, • BSNL (Manufacturer of fiber, s • Hi-Speed Broadband Siemens Networks Harmonic, I-Make, • Bharti (Airtel) copper wire, etc.) Subscriber and video Nortel Networks, Verimatrix • Reliance • Time Broadband enthusiast • NSN, UTStarcom • Viaccess, Thomson • XYZ (Confidential) Services Pvt. Ltd. • Homes with more than 1 or • Mototech • Smart Digivision 2 TVs and interested in • Thomson, Sagem triple play and single service provider Note: To some extent IPTV related R&D work is also being done here in India by some players such as UTStarcom, NDS, etc. Sun and Tech Mahindra along with AMD have a IPTV lab at the Tech Mahindra facility in Pune Knowledgefaber
  • 13. Two business model have emerged in this market State owned companies are using franchise model while private players opting for there own channel. • Airtel IPTV is based on the existing • Franchise model includes two DSL network, and Airtel is going all entities a content provider and an by itself with the help of technology infrastructure owner. Content partners. provider will broadcast content and • UTStarcom has a contract with utilize the infrastructure of other Bharti Airtel to supply its entity. RollingStream end-to- end IPTV • Advantages – New ideas and solution capital into the business and high speed-up the deployment of IPTV. • Companies like BSNL and MTNL are using this through IOL to provide IPTV services in various parts of India Franchise model ( Call it Telcos going by MVNO concept of IPTV themselves market) Note: In the both the models revenue generation process, technology tie-ups and content tie-ups are almost similar Source: Company website, News articles, Industry interviews Knowledgefaber
  • 14. IPTV Globally and in India IPTV India Dynamics IPTV Readiness and Challenges IPTV Subscriber Base Growth and Opportunity Knowledgefaber
  • 15. IPTV is exciting for stakeholders but making it work would be a huge challenge in India Is India ready for IPTV? Will the Threat of companies substitutes? IPTV make or lose money? Knowledgefaber
  • 16. Is India ready for IPTV? You can sense from the stakeholder’s response that IPTV is going to take some time to gather critical mass • Telecom players (read carriers) are not very aggressively pushing IPTV right now. • Infact the same players are heavily involved in their DTH service promotions. • We believe that IPTV will take some years to gain scale and will directly depend on telcos push and broadband penetration • Its success would depend on how seriously the top 4 telcos (with broadband infrastructure) take it up. Their involvement and creation of push would depend on the rate of return and the point of break even Knowledgefaber
  • 17. Threat of substitutes? Compare DTH versus IPTV “Just providing video Programs/video on demand through IPTV does not seem to be a viable business model in India since cable and DTH have already established a very large viewership base for themselves. Telcos and IPTV service providers have to come out with newer applications that can catch the attention of consumers. Unless IPTV establishes a unique selling proposition (USP), it will not be a popular choice for TV viewing” - Mahendra Nayak, Domain Head- Embedded Systems, Product Design Services, Tata Elxsi Limited PARAMETER DTH IPTV • High cost of the DSL line and right of • Cost per line is much lower as no way permissions Cost for Operator requirement of a physical line to home • Expensive hardware and software for handling the complex systems • Content creators (broadcasters) • Content creators are relatively less actively/aggressively pursue DTH interested to partner with IPTV Content Access operators to partner with them operators, and charge higher fees • DTH is considered most suitable for • For IPTV, the cable connectivity needs geographically large countries like the to be physical drawn until the customer Accessibility and US, Brazil, India because cost of a point, resulting in high installation DTH connection for customers charges for customers Cost for • IPTV’s Access to remote customers anywhere in country is the same Customers • Connectivity can be given even for might not be possible for many more people in remote villages years Source: Knowledgefaber Analysis, Industry Interviews Knowledgefaber
  • 18. Will the companies Inhibitors seems to outweigh the drivers in the current make or lose money? scenario Drivers Inhibitors Source: Knowledgefaber analysis, industry interviews Knowledgefaber
  • 19. Will the companies Drivers make or lose money? Driver Description • Option to choose from various available programs (including already broadcasted content), freedom to watch or skip advertisements and high level of interactivity • Parents can have a full knowledge/control of what kind of programs there kids watch and they Interactivity can control their timings, so as kids can study in exam time and watch there saved cartoon later in vacations • Customer have a option to watch two simultaneously broadcasted programs. For ex: IPL match Value-Added and soap opera • Availability of good and creative content, additional ‘killer applications’ like Video on Demand, services Music on Demand, karaoke, Internet on TV, voice/video conferencing, program guides, greetings, and home to home chat Customer- • Video quality of DTH is highly dependent on weather quality, but with IPTV this problem is end solved as this is provided through DSL cables mostly • TV sets with limited no. of channels can also watch as many channels as provided by service benefits provider as set top box removes the limit of number of channels available on TV set Fuelling • Triple play package can work as a booster for broadband penetration as this will increase broadband broadband subscription along with high ARPU customer base for companies, therefore telcos would push it further demand Source: Knowledgefaber research and analysis Knowledgefaber
  • 20. Will the companies make or lose Inhibitors money? Inhibitors Description • Broadband penetration is still a big challenge in India Broadband • There is a high cost of RoW permission charged , other high capital costs associated with last penetration mile distribution network and cost of services for users and n/w • IPTV requires at least 1.5 Mbps line (with MPEG-4) for basic services at a good QOS and 8 Mbps line (with MPEG-4) for HDTV services. Some part of the broadband networks are not capability ready yet • Services provided till last year have been no less than disappointing. There are video freezing, QOS frames freezing and other such problems. The old generation copper network and low bandwidth is just not going to work for IPTV. Add to that content handling capability issues. • There is a lack of high definition content available as Indian sops and other content is still Content produced in traditional formats readiness & Cost • Broadcasters are not offering the right prices to the IPTV players • IPTV is still costly as compared to its competitors like DTH and traditional cable (as low as $4 Cost of services per month in some cases), and it is difficult to convince price conscious Indian consumers to for user shell out that extra cost • Regulator framework in this area is not yet clear as government is still working on nitty-gritty's of policy regulating this fast evolving technology rich system, there aren't much examples Regulatory available of a emerging market adopting this technology • One of the power of IPTV to provide internet based channels is also not working in its favor as framework they are still not allowed in India due to censorship issues associated with them. Some of the smoke is getting cleared on this issue though • DTH has been immensely successful in remote areas where cable TV could not reach • Complex content delivery platform having integration challenges associated with IPTV are big Other and costly. Content distribution networks require high level of expertise to manage, which is not easy to find Infrastructure • It requires expensive servers/equipment/software solutions to provide IPTV services. With the problems subscriber numbers expected to be low, it looks like a risky proposition Source: Knowledgefaber research and analysis Knowledgefaber
  • 21. Broadband penetration Broadband penetration in India compared to global and n/w capability Scenario is very low Broadband penetration in India is one of the lowest in the world. IPTV’s success is directly dependant on that. Broadband penetration needs to grow at a much faster pace. Maybe VDSL, WiMAX or LTE can save the day for IPTV? Source: Knowledgefaber research and analysis, CIA world fact book, OECD, TRAI, Broadband world forum, Cisco, Point Topic Knowledgefaber
  • 22. Broadband IPTV requires at least 1.5 Mbps line (with MPEG-4) for penetration basic services at a good QOS and 8 Mbps line (with and n/w capability MPEG-4) for HDTV services. Some part of the broadband networks in India are not ready yet T4 – 274 Mbps OC3 – 155 Mbps 100 Mbps IPTV needs 1.5 Mbps* speed for T3 – 45 Mbps basic services E3 – 34.368 Mbps like SDTV channels Ethernet – 10 Mbps broadcasting… T2 – 6.312 Mbps Cable Modem – 4 Mbps E1 - 2.048 Mbps DSL/T1 - 1500 kbps …and requires 8 1 Mbps Mbps* for HDTV services Satellite - 400 kbps ISDN - 128 kbps 100 kbps Kbps = 1000 bits/second V 92 modem - 56 kbps Mbps = 1000000 bits/second 28.8 modem - 28.8 kbps 14.4 modem - 14.4 kbps Note: *with MPEG-4 compression technology Source: Knowledgefaber research and analysis Knowledgefaber
  • 23. Regulatory Following are the requirements from the regulatory side framework that will help IPTV’s growth in India IPTV market would require the following from the regulatory standpoint Status (WIP/Cleared) Storage and replay of IPTV content without any editing or modification should be allowed and defined as a part of the IPTV transmission. Time shift WIP TV is a big advantage of IPTV All broadcast channels from all sources must participate on IPTV platform Cleared (similar to DTH) Amendments to down-linking rules to include IPTV as a form of distribution Cleared as it is the case with the DTH and cable television. Pricing and revenue sharing should be defined and mandated for IPTV at each step. It should be done for all the parties involved such as Broadcaster, Content aggregator/Content Delivery Network (CDN) and the Telecom WIP Operator/others. Similar Pricing and revenue sharing mandate exists for cable CAS Purchase of content for IPTV should come under the Copyright Act 1957. IPTV needs to be defined and provisioned for legitimate usage of copyright under this act. Premium content is expensive and is also one of the WIP opportunities for IPTV. In order to invest in procuring copyright of such content, stable well defined regulations are a precursor. Internet content will be a part of IPTV on both computer and TV. Regulation of Internet content should be within the scope of prevailing Internet WIP regulations. Knowledgefaber
  • 24. Content readiness & Cost Content poses challenge and opportunities as well • With respect to content there are various costs which are involved and it totally depends on what route does the player take: - Fixed fee deal with the broadcaster - works in case telcos are extremely sure of the subscriber ramp up. With IPTV, telcos are not sure of that - Ala carte price per channel • Content cost which is aside of linear channel-- and this is the differentiating part. Worldwide for mature IPTV operators in Europe and satellite TV operators in USA and Australia, the revenue from these services already account for 15-18%. Also, the gross margin is extremely high for these services, sometimes to the tune of 30-40% which is quite contrary to what you get in the linear channel which is around 5-10% • Opportunity – The case where Belgacom outbid cable and TV companies for the rights to broadcast Belgian football, paying about 36 Million Euros a year for three years. The case in point are the exclusive rights to a major sporting events or other events such as Film awards or celebrity tours. Exclusive TV content like IPL or other cricket tournaments can be game-changers for IPTV players. There are two main models of telco access to exclusive TV content: buy the full rights, or “sublet” from a right-owner. But the challenge is that as more telcos seek exclusive content to make their TV offering relevant, the value of content is set to appreciate even further. • IPTV players require something similar to what DTH players enjoy today through lobbying and petitions. Tariff regulation at the wholesale level - between the broadcasters and the DTH operators - has already happened with the rule that DTH operators had to pay only 50% of what CAS and cable operators were paying to broadcasters for content. So while CAS operators have to pay Rs 5 to broadcasters per channel, DTH companies pay Rs 2.5. Knowledgefaber
  • 25. Will the Cost per line for IPTV is high and the number of companies make or lose subscribers are still very low; break-even might take money? several years but telcos would go for it • The cost per line for providing IPTV services for a Telco is in the range of $1000 to $2000 per user. Main components of cost being Access and head-end technology, Transport network and technology, Software & video platform technology. • For players with a network in place (all top telcos in India), cost per line would be in the range of $1000 • The cost of setting up is high for a brand-new rollout and is in the range of $2000 for a green field operation • Since the number of subscribers are going to be low, telcos need to provide aggressive pricing, to increase penetration. But currently, the pricing w.r.t customer i.e. cost/ MB delivered is several times of that in Europe and that is precisely because of the high infrastructure cost, bandwidth ( national + international ) cost. The high prices will hinder penetration • The ROI is going to be pick up only slowly and the break-even would take several years (say 6 to 10 years). Still, it makes sense for the telecom players to diversify to triple play of voice, data and video so as to ensure new revenue streams and ensure return on investment on their fixed lines • Also as the voice ARPUs are suffering, IPTV would make a lot of sense going forward • IPTV ARPUs for PCCW had grown at a rate of about 30% (NOW TV's ARPU in June 2008 grew by 28% from a year ago to HK$213) while satellite TV ARPUs for US providers such as DirecTV had grown at a rate of just 2%-4%. This can be seen as a positive point by the telcos in India • At least a 6-7 years time is expected for a telco to do break-even. Those who are able to do it sooner would be real winners Knowledgefaber
  • 26. IPTV Globally and in India IPTV India Dynamics IPTV Readiness and Challenges IPTV Subscriber Base Growth and Opportunity Knowledgefaber
  • 27. Growth of IPTV depends upon broadband subscriptions growth… Verified by various sources such as Assocham (30.1 million by 2013) Source: Knowledgefaber Research and Analysis Knowledgefaber
  • 28. What are the subscriber …and IPTV penetration within broadband subscribers. numbers and projections? Next 5 years will see tremendous boom in the market 3500 Scenario 2 – Broadband subscriber base sky- rockets and major push 7.00 for IPTV from Telcos IPTV penetration (in percentage) 5.16 3.71 2.67 0.45 1.92 Source: Knowledgefaber Research and Analysis Knowledgefaber
  • 29. India IPTV status is “Not OK” as of now, and the progress is slow with positive outlook reflected by entry of new players Time Expected to reach Status 2009 atleast next level of Status Categories (Great, OK, Not OK) (Short, Medium, Long Period)) Content readiness and cost Not OK Medium Unified standards development Not OK Medium Pricing and Promotions Not OK Short Capability of expected leaders OK Medium/Long Favorable Regulations Not OK Long Customer understanding of product proposition Not OK Short/Medium Access and head-end technology OK Medium Set-top box technology Great -- Broadband/transport infrastructure and technology Not OK Long Software & Video platform technology Great -- Note: Short period is about <2 years while Long period is about >4 years Source: Knowledgefaber Research and Analysis Knowledgefaber
  • 30. Recommendations • On demand – Please contact us! Knowledgefaber
  • 31. Appendix Knowledgefaber
  • 32. Knowledgefaber research in the IPTV goes beyond this report • Entire demand and supply side dynamics and market analysis • Studying all the tie-ups, technology partnerships, deals in India across the IPTV value-chain • Deeper value chain analysis with profit pool analysis • Detailed ROI and break-even analysis • Successful case studies from France, Hong Kong, Taiwan, Korea, US, Belgium, etc. • Trends in technology, regulatory, market, and customers • Customer preferences and opinions in terms of cost, prices, usage, QOS feedback, etc. If you have a research or consulting requirement in the IPTV area or other Telecom subject, please contact us for a discussion at: relationship@knowledgefaber.com or call us at 91-80-41231576 Knowledgefaber
  • 33. What is IPTV? • Internet Protocol Television (IPTV) is the delivery of broadcast-quality television and/or video signals to subscribers. This is done over a broadband connection using the Internet Protocol • While IP stands for Internet Protocol, this does not actually mean that television content is streaming over the Internet. IP is simply the same method, protocol or technology that enables you to access the Internet. IP- delivered television content is delivered using this technology. IPTV, unlike Internet TV, is primarily a TV experience rather than a PC experience and is meant as an alternative to cable and satellite • IPTV operates on a premise that's different from traditional satellite or cable television. In IPTV only selected programming and on-demand content are delivered to the consumer, while on satellite and cable, all channels are being pushed all the time to the consumer's home. • IPTV's ability to provide two-way communication (you request a programme from the TV guide and the programme is delivered to you) offers interactivity for the customer. Movies, past TV shows and other content can be distributed on demand, and service providers can tailor the requested content and advertising based on the customer's preferences Knowledgefaber
  • 34. IPTV system at a glance Content Sources Content Access Equipment Content Creation Decoder + Content Broadcasting Billing / SMS Streamer CAS, Content Transmission IP-Scrambler Middleware VoD / nVoD Servers IP Network with IGMP Support Subscribers TV Viewers IP-STB xDSL Modem DSLAM Ethernet Switch TV Viewers IP-STB PC Users PC Users Knowledgefaber
  • 35. Typical bandwidth requirements for IPTV Knowledgefaber
  • 36. Service provisioning quad play; Consumer market segments User INR 1500 per month Knowledgefaber
  • 37. DSL constitutes majority of the market share for the broadband market in India Market Share Break-up of Broadband Subscriber Base By Technology (2007) Service Description • DSL technology uses the infrastructure of Digital existing copper telephone infrastructure to facilitate high-speed data connections Subscriber • DSL uses high frequency, while regular Line (DSL) telephone uses low frequency on the same telephone line • A cable modem is a type of modem that provides access to a data signal sent over cable television. Cable • These are primarily used to deliver broadband Modem Internet access in the form of cable internet, taking advantage of the high bandwidth of cable television network • Ethernet is a family of frame-based computer Ethernet LAN networking technologies for local area networks • An audio broadcasting service transmitted via Radio the Internet (streaming technology) • Optical fibers permit transmission over longer distances and at higher data rates than other Fibre forms of communications • Fibers are used instead of metal wires because signals travel along them with less loss Note: Subscriber base shares are for Sep 2007 Source: TRAI Knowledgefaber
  • 38. Abbreviations • DSL (Digital Subscriber Line): DSL or xDSL, is a family of technologies that provides digital data transmission over the wires of a local telephone network • VoD = Video on Demand • MoD = Movie on Demand • SDTV = Standard Definition TV • CDN = A content delivery network or content distribution network (CDN) is a system of computers networked together across the Internet that cooperate transparently to deliver content to end users, most often for the purpose of improving performance, scalability, and cost efficiency. • DTH = Direct broadcast satellite (DBS) is a term used to refer to satellite television broadcasts intended for home reception, also referred to more broadly as direct-to-home signals. • RoW = A situation in which although a parcel of land has a specific private owner, some other party or the public at large has a legal right to traverse that land in some specified manner. Knowledgefaber
  • 40. Knowledgefaber wants to be a preferred research, analysis, analytics and consulting firm for companies globally Particulars Description Knowledgefaber is a rapidly growing organization based out of Bangalore, India. It specializes in customized market research, analysis, data analytics, and research based problem solving/consulting Who we are? It is founded by individuals experienced in delivering research/consulting solutions for both global and Indian clients We create knowledge for our clients that helps them in decision making at various levels in their organization and across functions such as Corporate Planning, R&D, Marketing & Sales, others. What do we do? We bring to the table a combination of business domain knowledge and research skills Flexible consulting models (onsite/offsite) to deliver cost-effective and high-quality solutions, Knowledge advantage over competitors, speedy response, action oriented results and lower costs Practical expertise and not only academic/bookish knowledge in the industries Benefits We cover Knowledge re-utilization from one industry to another so that best practices identified once can be used elsewhere Knowledgefaber
  • 41. Knowledgfaber at a glance Telecom (Equipment, Companies in the Wireline/Wireless field of Hi-tech, Services, Software, Telecom, Content, in short A to Verticals Clients Software/IT/ITeS, Z of telecom) others IT/ITeS/BPO/Software Big 5 consulting Media/Entertainment/ Functional experience firms Coverage of several Advertising working with consulting verticals firms and client experience working with companies Knowledgefaber A rich mix of engineers and Research, Analysis and MBAs provide diversified consulting Industry and Market skill-sets Analysis Indian Institute of Technology Demand estimation and forecasting Functional Capabilities People Indian Institute of Management Client Acquisition consulting Regional Engineering Outsourcing/Offshori- Colleges ng Studies Tier 1 MBA colleges Talent Pool Analysis Others Knowledgefaber
  • 42. Project approach/methodology of Knowledgefaber Approach/Methodology Stage 1 Stage 2 Stage 3 Stage 4 Data from secondary research Data cleaning, Final structuring and Problem solving Data from Primary Research Recommendations – analysis Actionable results Data Modeler Powerpoint Report Data from secondary Storyline is developed for Grasp on business research including various structuring the analysis fundamentals websites, online journals, Data Modeler is prepared in Research Inputs magazines, and databases. MS excel for data Consultants have Interviews with presentations and views experience of working on vendors/suppliers, hundreds of projects on manufacturers, service customized requirements providers, others Experience of successfully Interviews with industry executing projects with thought leaders, consultants, complex data requirements academia and industry Knowledgefaber network in bodies across the industries covered Knowledgefaber