Ericsson

Press information January 2007

IPTV ­ moving into the new television era
IPTV (Internet Protocol TV) is TV delivered via high-performance broadband. The service will help reshape the TV experience for consumers and deliver interactivity, multiple digital streams and high- definition TV. IPTV is next-generation television and offers services beyond what traditional terrestrial, satellite and cable alternatives deliver. In the next decade, IPTV is expected to move into the mainstream and be a key part of future broadband service bundles. The opportunity set
IPTV may still be in its infancy, but is expected to turn into a mass-market service over the next few years. In short, the addressable market for IPTV services is as big as the fixed-broadband market ­ which, in another five years, will be approaching 600 million access lines. The number of IPTV subscribers is set to more than double from 6.4 million in 2006 to 13.3 million in 2007, with more than 48 million households worldwide expected to have signed up by 2010, American research agency Gartner predicts.




IPTV is regarded by operators as an important customer service, and as a vehicle to reduce churn and increase operator revenue in the face of declining traditional telephony.
IPTV distributes broadcast TV services in a similar way to terrestrial, satellite or cable alternatives. However, IPTV differs from traditional TV in a number of ways. For example, content can be personalized and interactive, with high-definition TV capabilities. It can also integrate communication and video services. Interactive features include on-demand/time-shifted TV channels, as well as movies-on-demand. Subscribers may also contribute and distribute content.
IPTV offers increased control and convenience. Subscribers not only decide what to watch, but can control when, by whom, and how often ­ a handy benefit for concerned parents. Content can also be tailored to subscribers, ensuring they only receive information or advertisements relevant to their personal profile.
Key considerations
For IPTV to become a mass-market service, operators need a combination of standardized, scalable technologies capable of delivering IPTV to all the different device types. This requires a combination of analysis and design to make the products fit together in the right way. Operators also need to address the issues of content, pricing, bundling, billing and customer care.





In turn, users want a high-quality, consistent service and will not accept viewing interruptions. Ideally, customers should be able to buy any IPTV- ready TV safe in the knowledge that it will work just as well as traditional TV works today.
This is why Ericsson, with its history of delivering real-time, telecom-grade infrastructure, is driving the harmonization of IPTV and related services delivered over broadband, based on open standards. Ericsson is working with the relevant standardization bodies to achieve economies of scale and interoperability across IPTV and other service-reference architecture and interfaces.
The next generation
IPTV is the main driver for the shift from legacy broadband networks ­ which are primarily optimized for internet surfing at moderate speeds ­ to high-performance broadband networks. High-performance broadband networks are characterized by ultra-fast DSL technologies in the first mile, combined with Ethernet aggregation in the second mile. IPTV also has the potential to offer more services in the future. Integrating the IMS (IP Multimedia Subsystem) standard with IPTV will enable new interactive communication services. For example, users will not only be able to view video-on-demand wherever they are, but also talk, chat, send text messages and take part in activities such as voting and consumer polling. In turn, this could evolve into purchase transactions and targeted, interactive advertising. With IMS playing a major role in future offerings, the vision of converged "quadruple play" (combined telephony, internet, TV and mobile) services may become a mass-market reality. Showcasing IPTV
During the 2006 GLOBALCOMM conference, Ericsson and Sony for the first time together demonstrated the benefits of combining IMS-based personalized TV with Sony's home network based on Digital Living Network Alliance (DLNA) standards. The demonstration showed how the combined technologies allow consumers to use their mobile phones to communicate with their home environment. For example, users could wirelessly view digital photos stored in their mobile phones on a living room TV, use a home gateway for instant messaging between mobile phones outside the home and a living room TV, or access content stored on their home PC via mobile phones.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at www.ericsson.com
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