08
September, 2004: Belgacom says it is now prioritising development of
interactive digital tv (iDTV) services to compensate for a recent
slow-down in basic broadband growth.
Starting
in November with a pilot involving 1,000 families in Brussels, Ghent
and Liege, the Belgian telco will start to test the mechanics and
appeal of its iDTV service known as 'BelgacomTV'. The company
reports a recent slowing of Belgian broadband growth - a phenomenon
that it suggests may be due to stagnating PC penetration - and believes
interactive tv will help re-energise the sector. The effort to
commercialise broadband services is itself meant to counter the ongoing
decline in Belgacom's traditional PSTN business.
'BelgacomTV'
will offer a variety of tv and interactive services, including digital
video recording, video-on-demand, tv programming and high-speed
Internet access. Belgacom says its iDTV service will run over its
existing ADSL network, but an upgrade to VDSL supplied by Alcatel is in
progress. Other equipment suppliers to 'BelgacomTV' include nCUBE and
Siemens. A commercial 'BelgacomTV' launch is planned for 2005.
'BelgacomTV'
is part of Belgacom's on-going optical/VDSL broadband project known as
'Broadway'. Reports have costed the 'Broadway' investment at around
€300mn. Reportedly Belgacom is aiming to use 'Broadway' as a key
element in capturing two thirds of the Belgian broadband market. Bigger picture
Belgacom is one of a growing number of telcos heading down the digital tv over PSTN trail. A recent report ('Telco TV Take Off')
from the US In-Stat/MDR market research firm calculates that there will
be a 100% growth in telco tv subscribers this year, winding up with
around 14mn subscribers by 2008.
In-Stat/MDR
reckons that the delivery of digital tv service over ADSL, VDSL and
fibre networks is becoming increasingly viable as improvements in the
data rates and reach of DSL enable telcos to reach more customers with
the right amount of bandwidth. At the same time, advances in video
compression are reducing the right amount of bandwidth needed for each
video stream.
"Competitive
threats and fixed line revenue pressures are encouraging telcos to
become active in offering digital tv to their subscribers. The
possibility of gaining an additional US$60 per month in revenue, while
becoming less likely to lose US$30 a month to your competition, is an
important factor in the business case", says Michelle Abraham, a senior
analyst with In-Stat/MDR. "The issue to solve then is what technologies
are available and what will work best for the network to meet the tv
needs of potential subscribers".
John Williamson |
Latest News 
