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Estimated growth in SBC, Verizon video subscribers
2005
90,000
2006
637,000
2007
1.75 million
2008
3.18 million
Source: UBS Investment Research
HOME INVASION
Cable operators and phone companies are stealing each other's customers
Two unrelated items over last weekend remind us that IPTV still has a ways to go before it becomes a large force in re-inventing television.
First, Verizon Communications Inc. and SBC Communications Inc. failed to win passage of a Texas law that would have made it easier for the telephone companies to sell television services in the second most-populous U.S. state. Now they must do what the cable companies had to do historically: get each local municipality to approve a charter to offer television.
"Competition for video services will occur much slower without a statewide video franchise," Steve Banta, president of the Southwest region for Verizon, said in a statement. "We regret Texas lawmakers did not have enough time to reach a compromise."
I can tell you that to get television franchises across the country involves a minimum of 8,000 individual charters (probably significantly higher) for the cable companies. That is a tough burden to place on telco's in their quest to compete.
Second, Swisscom has postponed until some time in 2006 the proposed launch of its Bluewin broadband television service using Microsoft IPTV software. The Swiss telephone operator was due to become the first in Europe to provide a commercial internet protocol television service using the Microsoft IPTV platform.
Swisscom Fixnet says the commercial launch will not be possible in the second half of 2005 as originally planned, “as it has become apparent that the technology currently available is not yet suitable”. Adrian Bult, their chief executive said “High quality and full service provision take precedence at Swisscom”.
The announcement must be something of a concern for Microsoft, with whom they have been working closely to deliver the IPTV service. According to one report from a Swisscom representative “They aren’t as far along as they though they would be”.
