Big Telcos' Roles as Video Providers Will Drive Sector Profitability

The entry of incumbent telcos as video service providers will trigger a ramp-up in telco deployment of equipment to support video services, according to a new study from ABI Research.

Oyster Bay, NY - January 18, 2005 - The entry of incumbent telcos as video service providers will trigger a ramp -up in telco deployment of equipment to support video services, according to a new study from ABI Research.


"TelcoTV Infrastructure & Service Integrator Opportunities" examines the trends, market values, and penetration of the emerging medium of TelcoTV, the infrastructure enabling it, and the main vendors in the space.

All eyes are now on this market, as some large telcos - - Verizon and SBC in the U.S., FastWeb in Italy, Chunghwa in Taiwan and NTT in Japan among others - - make serious moves to deliver video entertainment to mass audiences.

The report considers the end -to -end network infrastructure required to provide video services, with a focus on VOD vendors and the integrators who deliver video -infrastructure solutions. It includes an ABI Research Vendor Matrix for twelve VOD vendors and a "SWOT" analysis of nine system integrators.

The results are revealing, says analyst Michael Arden. "Most VOD vendors offer surprisingly similar products, considering the strength of the competition. The big differentiator is scale: some companies can only serve large or small markets, while a few can do both."

While their competitive field is just as crowded, the differences between integrators are more pronounced, with Tandberg and Alcatel vying for supremacy and Microsoft a distant third. The companies that do well are those that have a big customer base of telcos, as well as those with a track record of previous deployments. "And at the high end of the market," says Arden, "many of these companies are forming strong technology partnerships."

A related ABI Research report, "The Rise of Broadband Video" examines how video delivered as IP packets creates the possibility for a new entertainment distribution model.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call 516.624.2500.

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