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February 9 2008
IPTV via cable unlikely anytime soon
Arcopol Chaudhuri
DNA - Daily News & Analysis
(c) 2008 Diligent Media Corporation Ltd. All rights reserved.
It would be sometime before cable firmscan rejoice
The world's second-largest cable TV market is set for a hearty engagement with internet protocol television (IPTV).
The I&B ministry's approval to the recommendations of Telecom Regulatory and Development Authority (Trai) for facilitating IPTV services has cleared apprehensions of a stifling regulatory environment.
Hitherto, only telecom players were allowed to offer IPTV services. But now, even cable operators registered under the Cable TV Network (Regulation) Act of 1995 can provide IPTV services without any further licence.
However, though the Trai nod has given cable operators a level playing field with telcos, the industry is divided over what the approval means. From the looks of it, it would be some time before the cable operators can start rejoicing.
A Hathway Cable official said, "The nod for starting our own IPTV services is just on paper. There are a host of bandwidth issues and complications that still remain unaddressed."
Indeed, it could well be that cable operators fit the current scheme of things only as last mile connectors.
"Wholesome IPTV services can begin only when multi-system operators look beyond cable and switch to IPTV. With broadcasters being given approval to air their feeds, IPTV should become an attractive avenue, but unfortunately that is not happening because complacency levels are high within the industry about cash-happy returns from cable alone," said the Hathway official.
Bandwidth is a key issue, too.
An official from Incablenet said, "Compared to countries like the US and UK, bandwidth is very expensive in India. The regulatory cap has to be loosened here. IPTV requires at least 8 Mbps bandwidth, requiring installation of cables carrying at least 1.2 terabytes of information."
IPTV delivers digital television through IP and comes bundled with services like video on demand, broadband access and voice over IP.
Compared to direct-to-home (DTH) services, it offers a two-way interactivity for users and commands higher level of infrastructure applications.
But, even if IPTV penetration begins, pricing is going to be the deciding factor.
Cable operators say existing IPTV players are offering price packages that are "not competitive enough to DTH." For example, MTNL, which has launched its IPTV services, has installation charges of Rs999, a monthly fee of Rs199 and a set-top box rental of Rs100. Then, of course, there are subscription charges for various pay channels.
Cable industry officials say the scene might change when large corporate players like Reliance enter the picture.
Microsoft has already entered into a strategic alliance to power Reliance Communications' IPTV service, slated to begin by March 2008.
Rumour mills are churning overtime speculating about the kind of freebies that would be offered when it hits the market. However, Roop Sharma, president of the Cable Operators Federation of India sees good times for cable operators in the coming days.
"The government has finally realised that extensive grassroots connectivity and infrastructure can be leveraged by opening the floodgates to cable operators. It has come to terms with the fact that if a technology led-platform like IPTV has to be implemented nationwide, it is not the corporate players, but the cable industry that can best offer the existing ground infrastructure," she said.
Research from Hong Kong-based Media Partners Asia suggests that, thanks to economic growth, higher multi-channel penetration, DTH growth and the emergence of IPTV, India will join Japan as Asia's leading revenue generating pay-TV market by 2015 and will overtake Japan as Asia's leading revenue-generating market for cable & satellite broadcasters by 2010.
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