Big vendors make their video pitch

Any doubt that vendors don’t get the implications of pressure from pending cable telephony deployments went out the window this morning at the opening of Supercomm 2004. Nortel Networks announced an alliance that brings in most of the elements of a video solution (though not the whole package), Microsoft and Lucent Technologies are joining forces to target IP video and the triple-play jargon is everywhere you look.

The entry of the largest vendors into the video market is positive in that it also means they are getting signs from the largest U.S. carriers that perhaps their satellite alliances are nothing more than a jumping-off point to a more integrated terrestrial strategy. At the same time, neither Lucent nor Nortel now have the challenge of proving to the world that telco video plays can work.

Evidence from the independent carrier market shows that video over the telco plant can work, but translating that success to large carriers will be more challenging. Perhaps the biggest issue, which has yet to be solved in any environment, is finding a service carrier that differentiates them from cable and satellite options. The initial pitches on the floor today point to more interactivity and specialized content.

And while such solutions are confirmation that the answer may eventually come from the vendor community, they are just a start.

E-mail me at vvittore@primediabusiness.com.