NAB: IPTV rising?

LAS VEGAS – A year ago at the NAB show, the buzz around IPTV had taken a decidedly negative turn, especially where North American independent telcos were concerned. Early deployments had hit hard times, and some independents were questioning whether IPTV was even worth the considerable effort and expense. Equipment vendors were promoting solutions intended to dig current customers out of their upgrade holes rather than talking about new features or applications.

What a difference a year has made.

At this year's NAB, there have been fewer questions about whether IPTV is viable or necessary and more focus on the best way to get into the video market quickly and somehow blend over-the-top Internet video with on-demand and broadcast products. Vendors, from headend equipment makers and middleware companies to set-top box makers and integrators, are reporting a steady uptick in deployments and discussions.

Some of that is just reality setting in, said Tom Laird, vice president for business development, IPTV, at Mariner, which provides end-to-end service integration for IPTV deployments. "Realistically, if you are a tier-three or tier-four telco, you either have to get the asset ready to sell or get into IPTV," Laird said. Competition from satellite, cable and ISP operators is cannibalizing traditional revenues. "Telcos have to carve out their space by offering a more robust suite of services. They need to get into entertainment, because they are commoditized on long-distance, commoditized on access and commoditized on high-speed Internet."

The growth of Internet video also is lifting IPTV, said Amino Chief Executive Officer Andrew Burke, and the success and marketing prowess of AT&T and Verizon in selling their IPTV solutions is giving the entire industry a lift. "People are watching TV over broadband, so that's no longer the question," Burke said. "Consumers are doing IPTV."

Companies such as Harmonic, who haven't played heavily in the smaller telco market, are now eyeing sales there, said Sarah Lum, director of marketing communications. Harmonic has created the video assets to support a multi-platform wireline-wireless play and was demonstrating those capabilities at NAB.

A few things are working in favor of the independent IPTV play: Headend gear is more affordable, and there are more options for sharing headends. Even in the wake of SES Americom's closing of its wholesale content offering, other partners remain, such as Avail, and there are hybrid options such as SezMi also in the market, although neither were in sight at NAB. IPTV middleware is more mature and offers solutions that can compete with cable on key features such as high-definition programming and digital video recorder capabilities.