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Inside Telecommunications: April to June 2011 - EY - Global

Inside Telecommunications: April to June 2011

Service innovation

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Jonathan Dharmapalan 
Global Telecommunications Leader
Adrian Baschnonga 
Global Telecommunications Senior Analyst
Steve Lo 
Global Telecommunications Center: Beijing
Holger Forst 
Global Telecommunications Center: Cologne
Prashant Singhai 
Global Telecommunications Center: Delhi
Serge Thiemele 
Global Telecommunications Center: Johannesburg
Wasim Khan 
Global Telecommunications Center: Riyadh
Mike Stoltz 
Global Telecommunications Center: San Antonio

Europe remains the leader for IPTV adoption, but Asia has stronger growth rates.

Summary: Service innovation’s hot spot is IPTV. Although triple play adoption is strong across a number of regions, we don’t yet know what the outcome for quadruple play will look like.

The multi-play market

The rise of Internet Protocol television (IPTV) is changing the profile of the multi-play market.

IPTV services are becoming better established in mature markets as players in emerging markets from China to Kenya look to add TV elements to bundle packages.

Europe remains the leader for IPTV adoption, but Asia has stronger growth rates.

IPTV subscribers by region

Source: Point Topic, “Year-End 2010 Broadband and IPTV report highlights,” 23 March 2011.

Historically, network owners have led the way into bundle service provision, yet asset-light players such as MVNOs are also warming to the concept, striking wholesale deals with larger players. Partnerships remain vital to growth, with operators continuing to source content from broadcasters.

As the number of operators offering IPTV services continues to grow, it’s becoming more important for IPTV players that are exploiting convergence scenarios to differentiate their offerings.

63% of IPTV service providers planned to support multi-screen viewing across PC, tablet and smartphone by 2012, according to Infonetics Research.1

While IPTV growth rates are strong in many regions, the outlook is less clear for quadruple play services where take-up rates remain lower for the time being.

Time-to-market is an ongoing challenge

In a sector subject to ongoing waves of disruption, time-to-market is more important than ever. However, a recent survey from Amdocs shows there is plenty of room for improvement.

The operational support systems (OSS) vendor found that, while operators see time-to-market for new services as more important compared to three years ago, the proportion of operators that are able to bring a product to market within six months has actually fallen over the same period.

Operator perspectives on time-to-market

Operators saying that time-to-market for new services is very important to remaining competitive

Operators that can bring a product to market within six months

1 “Infonetics Research IPTV survey: IPTV services are getting highly personalized, highly integrated, portable, on-demand,” Infonetics Research, 21 July 2011.

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