Indian Media Book > IPTVgeneral

IPTV takes off

Internet Protocol television (IPTV) is a system through which television services are delivered using the internet protocol suite over a packet-switched network such as the internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats.

IPTV services may be classified into three main groups:

§ live television, with or without interactivity related to the current TV show;

§ time-shifted television: catch-up TV (replays a TV show that was broadcast hours or days ago), start-over TV (replays the current TV show from its beginning);

§ video on demand (VOD): browse a catalog of videos, not related to TV programming.

In short, IPTV helps you to become the master of your television set, not the slave. You can watch your favorites at your convenience.

IPTV Service Providers & Their Ventures:

Aksh and BSNL joint venture for IPTV services in smaller cities like Jaipur and Jodhpur been set at very attractive levels with subscription charges varying between INR 100 and INR 200 per month (depending on the city). The setup box is free and available against a refundable security deposit of INR 999. At such price points and with unique features like time shifted viewing, IPTV is competitively priced in respect to other distribution services – Cable and DTH. However, the quality and reliability of the service continues to be an issue has curbed the acceptance rates till now.

In January, 2009, Bharti also announced its offers for triple play services (land line + broadband + IPTV) at INR 999 per month after a one time installation charge of INR 3999.

Triple Play Opportunities For Indian Telecoms

The average pay TV ARPU in India at around $4, remains low by global standards, coming in the second last position among the major Asia Pacific nations

Revenue Breakup in Triple Play Services
Service	ARPU (In INR)
Landline	200
Internet	400
IPTV	200
Total	800

Source : Industry KMPG Analysis

In this breakup, the IPTV ARPU has been assumed conservatively, but if add-on services, such as video-on-demand were to take off in India, the average ARPU from IPTV segment could be significantly higher.