Overview of IPTV deployments and packages in Europe and Asia

1. IPTV This picture
Reality Check Europe and Asia is a wildcard.
You will find photos
and pictures which
are graphically
produced – simply
use the following
navigation in the
think-cell chart
toolbar:
The Americas Executive Institute 2007 “More” >> “Image
Library”
Lars Bodenheimer
VP Technology & Network Engineering
Detecon, Inc.

2. IPTV Evolution
IPTV will evolve from a pure IP based TV service to a multimedia, multiplatform
and multitask based “Next Generation TV”
“[IPTV] is a process where our distributors [franchised operators]
take our linear networks and chop up the signals into little packets
and send them out over a secure network and put it back together
for their customers.”
[Sean Riley, Senior Vice President of Sales for Fox]
“[NGTV] is a TV offering that goes beyond what MSOs, satellite
providers and Telcos are currently offering. Its contours are being
defined everyday by, among others, network operators, content
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
owners, internet brands, consumer electronic manufacturers and
viewers. NGTV will definitely expand to encompass a form of
WebTV and it will also be mobile.
[Detecon, Inc.]
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3. IPTV Platform
A carrier that provides 1G/2G IPTV services will implement, integrated, or
otherwise realize one or more of the building blocks below
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
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4. IPTV - who is leading, who is following?
IPTV is seeing constant growth all over the world, but Europe is expected to keep
its leading position for the next few years
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5. IPTV - deployments worldwide
A mix of incumbent and local players determine the current IPTV service
provider landscape
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
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6. IPTV – different regional drivers and inhibitors
The situation differs significantly from continent to continent as well as
sometimes country to country
USA Western Europe
Pay TV Free-TV
High ARPU, high usage High usage
Cable operators’ 3Play Early start
“I love my TiVO!” Often weak cable operators
TV is plural Killer content Soccer
16 Point-Text
IPTV barely laid out yet due Largest populations
to high regulatory hurdles
Islands of the highest
Telcos have better land line broadband penetration
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
coverage than cable levels
providers
Ocean of poor network
infrastructure
Latin America Asia
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7. IPTV in Western Europe
IPTV is facing strong competition especially by Terrestrial Television in Europe
but is gaining more momentum
Terrestrial Television Satellite Subscribers CATV Subscribers
IPTV Subscribers Total Broadband Subscribers
50
47.2
45
44.1 42.5 44.6
43.5
40 42.7
35
32.9
30
29.5 22.5 30 29.5 29.3
25
23.9 24.6 24.5
20 22.5
15
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10
5 3.25
0.8 1.65
0.13
0
2004 2005 2006 2007
TV watchers and broadband subscribers in France, Germany, Italy and Spain (2004 – 2007, million households)
Source: InfoCom 2007
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8. IPTV in Western Europe
While FastWeb and Orange.TV represent the biggest, earliest and most innovative
IPTV markets, DT faces a substantially more difficult task
FastWeb Orange.TV T-Home
FastWebTV + (1x, 2x, 4x)
Offer Triple Play Triple-Play
Triple-Play
All national channels, VoD, All DTT Channels, Very good 70 (100) TV Channels +
Channels
Soccer on PPV basis Pay-TV and VoD Offer VoD + Soccer Option
Recommendation System HDTV and VoD Content HD, Timeshifted TV, DVR,
Key Features
Internet by TV HD, VoD, PVR optimized for Cell and PC TV Archiv, Printed TV Guide
DSL, FTTH/FTTO ADSL 2+, FTTH Microsoft TV
Technology
IPTV Platform self developed Platform mainly Thomson VDSL2
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
20 € (single) 29,95 € (8 MBit) 59,95 € Basic
Price
65 € (Triple-Play) Plenty of extra fees 74,95 € Plus
72.2%
Marketshare ~ 50 % N/A
(1 million + BB subs)
Source: Detecon Research, Company Websites, Ovum 2007, Screen Digest 2007
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9. Italy / FastWeb
After its start FastWeb became the leading reference worldwide for how to create
and build IPTV services
Italy FastWeb
400.000 IPTV subscribers as of IPTV Launch 2003 (1st)
June 2007
230,000 IPTV subscribers (21%
Household penetration: 5% of its broadband customers, one
(2010: 13%) of the highest rates worldwide)
Fairly limited terrestrial TV service World leader in terms of IPTV
(switch off in 2008) ARPU contribution to broadband
revenue (Residential ARPU is EUR
No cable operators
61)
Goverment subsidised set-top
Strong innovator
boxes for DTT
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Worlds first Triple Play provider
Triple-Play popularity restricted
(2003)
Simple pricing system
FastWebTV (IPTV Only Service)
Successful local and child-content
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10. ContentWise Recommendation System (Italy)
ContentWise represents the next step for IPTV. From building up and expanding
the IPTV portfolio, to leveraging and streamlining what there is
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
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11. France / Orange (France Telecom)
France is the biggest and one of the most competitive IPTV markets worldwide
France Orange.TV
2.55 m IPTV subscribers as of Launched in 2004 (1st)
June 2007 (2010: 3,4m)
0.975 m subscribers (Q3 2007)
Household penetration: 13.7%
Adopted Price, content and
Weak cable coverage of 30% and features due to strong competition
high willingness to pay for TV
Premium content packages
Two satellite players, open to IPTV incorporating TPS and Canal+
as a delivery channel (now merged Pay-TV programs
though)
Flexible service options
Strong emphasis on locally- Technique support better than
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produced content. competitors
Analog TT to be switched off in Agreements to offer an exclusive
2012 variety of channels
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12. Germany / Deutsche Telekom
Germany is so far a very difficult market for IPTV, but despite initial problems,
strong growth is expected for the next years
Germany T-Home
218,000 IPTV subscribers as of Launched Q4 2006 (2nd)
June 2007 (2010: 3,195M)
Number of subscribers: N/A
Household penetration: 1% believed to be less than 100,000
(2010: 8%)
IPTV coverage: 15M HH
Highest avaiability of FreeTV in EU
Goal of 1M Triple-Play customers
and low priced, widely available
end 2007 had to be reduced to
CATV (->regulation)
100k–200k (2010: 1.5M)
Price is key Factor
Weak performance addressed with
Little interest in features 25% price cut
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
Unawareness of VoD and New features
personalized programming guide Bundesliga special
Analog TT to be switched off in Technical and regulatory Problems
2011
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13. IPTV in Asia
The situation for IPTV differs greatly among Asian countries. Where the worlds
highest broadband penetrations border regions of poor network infrastructure
PCCW China Telecom Yahoo!BB
Triple Play (Qadruple) Triple-Pay
Offer Triple Play
Now TV (independent) (Quadruple future)
SMG Channels 36+ Channels,
Channels 131 channels (50 exlusive)
5600h VoD or 1000 VoD titles
Program „a la carte“ Video Gaming
Key Features PVR, 48h Timeshift TV
TV + VAS TV-Base Service
ADSL+, FTTH ADSL, FTTN ADSL, (FTTH)
Technology
Self developed UTStarcom, ZTE UTStarcom
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
Free 60yuan ($7.42) 33 $ Basic
Price
+ price by extra channel (Shanghai) + Extra Services
70 %
Marketshare ~ 55% (Estimate) N/A
(49 % among all TV offers)
Source: Detecon Research, Company Websites, Ovum 2007
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14. Hong Kong PCCW
PCCW has written a success story with an early launch of IPTV, maintaining a
fairly high ARPU compared to other providers in Asia
Hong Kong PCCW - Now TV
878,000 IPTV subscribers (End Launched 09/2003
2006)
758,000 subscribers (End 2006)
IPTV Household penetration ARPU: $21
39.3% at the end of 2006
Over 1.74 M broadband
households (78% penetration
rate) Initial setbacks
Free IPTV channels included in
Broadcasting Bill in 2000 every broadband subscription
Only few Free-TV channels World leading Innovator
Split-screen: Soccer + VAS
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Intense broadband competition
“a la carte” subscription model
High population density
IPTV drives PCCWs wireline
Hong Kong is the only market with business
IPTV ARPUs above those of cable
and satellite Pay-TV market leader Offers IPTV consulting now
World biggest Provider
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15. China / China Telecom
Different go-to-market approach necessary, unique market, regulatory poorness
China China Telecom
~ 500,000 IPTV subscribers Launched 05/2005
(estimated)
221,000 IPTV subscribers by the
Broadband penetration: 13% end of 2006, predominantly in
Shanghai
Beijing Olympic Games 2008 Initial start with a 5000 user IPTV
network, which had a capacity of
Content is heavily regulated
100,000 concurrent media streams
Hughe market, little infrastructure
Shanghai followed supporting
and buying power
100,000 customers (today 7
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
Cable TV ARPU is low at Rmb15- deployments)
20 (US$1.8-2.4) for access to over
Emphasis on basic features like
50 channels
Live TV, VoD and timeshift PVR
Regulatory obstacles for IPTV
Partnered with Shanghai Media
Roughly 2200 cable TV operators Group for content
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16. Japan / Yahoo!BB
Although great technological potential and innovation affine people, Japanese
show surprisingly little interest in IPTV so far
Japan BB.TV
1M estimated IPTV subscribers Launched Q2 2003 (2nd)
Broadband penetration: 52% Number of subscribers: N/A
One of the worlds best developed
Most innovative Player on the
broadband infrastructure
japanes market
Low broadband prices
Flexible pricing, 36 TV Channels or
End 2006 Japan had 26.7 M 1000 VoD titles per month to
broadband customers (30% FTTH) choose from + „a la carte“
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
High interest in new techniques G-Cluster (Gaming)
Despite this overall Pay-TV TV-Base Service
channels are underperforming
Quardrupel-Play (all these services
(Sattelite, Cable)
shall come to handsets)
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17. Detecon at a Glance
Our international presence ensures your international success. Our regional offices
support you throughout the world and are suiting the dynamic growth in ICT markets.
Foundation:
1954 Diebold
1977 DETECON
Turnover 2006:
EUR 148 million
650 consultants
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
Offices in Germany:
Bonn (HQ), Dresden, Eschborn, Munich
International locations:
Abu Dhabi, Bangkok, Johannesburg, Mexico City,
Beijing, Reston, Riyadh, San Mateo, Singapore,
Zurich
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18. Research Methodology
We have been involved in Telco TV projects since the 214 Waiver of the FCC in
1992 and in Germany with the videotext and T-Vision.
Primary Research
650 consultants
>3200 projects
120 countries
Strategic workshops
Users Clinic
Secondary Research
Technology reports
Market, industry and
competition analyses
Company and country
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specific information
Analysts‘ reports
No formal Delphi forecasting, no Oxford style debate, some wisdom of crowd. The opinion in
this presentation is those of the authors and do not necessarily reflect the official position of
any other entity affiliated with Detecon, Inc.
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19. Your contact:
Lars Bodenheimer
2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT
Vice President
Think forward
Technology & Network Engineering
Detecon, Inc.
12007 Sunrise Valley Drive, Suite 105
Reston, VA 20191 USA
(703) 480-0812 Phone
lars.bodenheimer@detecon.com
www.deteconusa.com
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