“Television over the internet, coming soon!”

Intel IPTV: Can Telcos Avoid ‘Entertainment Bypass’?

Sun. January 1, 2006

Intel’s recent teaming with 40 IPTV content partners for its worldwide, on-demand, entertainment-for-the-home initiative raises questions about how telcos and cable operators can avoid being marginalized in this make-or-break market.

“The first and foremost issue is how service providers approach the specter of ‘entertainment bypass,’ claimed Daniel Briere, CEO of TeleChoice. “They’re in the untenable position of having to choose between capping broadband access usage to avoid this bypass or losing ROI-needed TV customers.”

As innovative and advanced as the Intel effort is, the ecosystem still needs transport to deliver movies, music and TV shows to the devices in homes that embody its Viiv technology. “But once you start moving away from the all-you-can-eat monthly model for broadband access, it can impact the entire Internet-based ecosystem,” Briere reasoned.

Telcos and cable operators are both looking at the prospect of a la carte pricing for video services to make their offerings more attractive to consumers. But from a business perspective, can they make enough money on pure broadband access to recoup the billions of dollars in network outlays, such as the $4 billion capital expenditure for SBC’s Project Lightspeed?

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