INTERNET
BT unveils broadband TV service
21-03-2006
by Ciara O'Brien
BT is gearing up to launch its new broadband television service in the UK this autumn.
The service, christened BT Vision, will provide digital TV over broadband lines. According to BT, there is no compulsory subscription, so users will only pay for what they watch. New and existing BT broadband customers will be able to take advantage of the new service first.
The service will offer access to more than 30 Freeview channels through the TV aerial, depending on coverage; on-demand shows, including movies, comedy, music and children's shows; TV shows from the past week that viewers may have missed; a digital video recorder that stores up to 80 hours of programming; and future access to instant messaging, chat and video telephony services through the TV.
BT Vision will be delivered through a set-top box that is powered by Microsoft software.
The service has already agreed deals with BBC Worldwide, Warner Music group, Cartoon Network, Paramount and Endemol.
"BT Vision will be offered nationwide and will not be restricted to metropolitan areas, and as with Freeview there will be no mandatory subscription," confirmed Dan Marks, chief executive of TV Services.
However, BT's is just one of the recent announcements on IPTV. Deutsche Telekom and Microsoft have teamed up to enter the broadband television arena, with Microsoft once again providing the software. There are also several companies in the US trialling similar services, including AT&T and Verizon.
According to a report from consultants Frost & Sullivan, the reason for this shift towards extra services on the telecoms space is mainly due to declining revenues. This fall is being partly attributed to voice over internet protocol (VoIP) and broadband over cable modems; the telecoms operators are hitting back with added services such as IPTV.
Taking on the provision of IPTV services isn't a simple matter, however.
"IPTV involves not only network upgrades, but also securing premium content for distribution, resolving operational, billing and management integration issues as well as providing a satisfactory user interface, among other concerns," said Fernando Elizalde, ICT senior industry analyst. "All these represent significant challenges to telecom operators entering an unfamiliar territory, such as the distribution of entertainment content."
However, Frost & Sullivan expects IPTV to become a valid alternative to cable and satellite TV in time.
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