For Telecommunications Services Professionals

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	April 11, 2005 Telcos' IPTV Reality Check Telcos' IPTV Subscribers Will Barely Surpass 2 Million By 2009 by Maribel D. Lopez with Josh Bernoff, Jennifer Joseph

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Executive Summary

Telcos have jumped on the TV bandwagon, but it won't be an easy ride. Entering the market means spending billions in network upgrades, rolling out services with unproven IPTV platforms, and navigating the difficult content acquisition process. IPTV promises great content selection, more interactivity, and enhanced TV features, such as faster channel changing. But given telcos' lame track record with selling new services like DSL, we expect their TV efforts to get off to a slow start. With limited consumer interest in triple play and difficulty in creating product differentiation, telcos will remove profit from the TV services market as they launch price wars to grab consumers.

TABLE OF CONTENTS

• 2005: The Return Of Telco TV — This Time They Mean Business
• Telcos Promise A Better Experience With IPTV
• Telco TV Is Still More Of A Dream Than A Reality
• Telco TV Makes A Minor Dent In Subscriber Numbers But A Major Dent In Revenue

RECOMMENDATIONS

• Both Telcos And Cablecos Must Prepare For IPTV

WHAT IT MEANS

• Opportunities In The New Competitive TV Landscape
• Related Research Documents

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