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Viewing report
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U.S. MSO Triple Play Service & IP Infrastructure Report - 2005-2008
Multimedia Research Group, Feb 2005, Pages: 90
This report tracks the strategies, plans, implementation schedules and anticipated new revenues of over twenty new services; and the associated IP Infrastructure upgrades needed to support their new cable services.
A new study shows how the eight largest US cable MSOs (Multi System Operators) are sequencing and prioritizing new services to address triple-play threats from Satellite and emerging Telco competition. Although Wall Street recently financed over $65 billion in infrastructure upgrades for cable (spending roughly $1000 per subscriber), MSOs are now having to finance further upgrades to deploy VOIP (voice over IP), enhanced HSD (High Speed Data), VOD (Video on Demand), advanced DVRs (Digital Video Recorders), and related Interactive (iTV) services.
In the process of adding new services, MSOs have also discovered the problematic 'silo effect' of running simultaneous (but independent) IP and non- IP services, adding significant complexities and costs. 'The good news is that many of the new services (VOIP, VOD, HSD and DVRs) add new revenues,' states Gary Schultz, CEO. 'The bad news is that the silo effect needs to be tamed quickly.'
The report shows that IP and GBE upgrades are a high priority in 2005 to 2008; and explains the role of MPLS (Multi-Protocol Label Switching) devices, node splitting and other infrastructure upgrades the MSOs have planned. It also reveals that DVRs will play a major strategic roll because they create immediate new revenues, provision VOD and other digital services, reduce churn, and neutralize a major satellite advantage. Trial and deployment schedules of over 20 new services are examined, including HD (High Definition TV), Multi-Room DVRs, Advertising on Demand, Free on Demand (FOD), OCAP upgrades (Open Cable Applications Protocol), Photo Storage, and others (related and unrelated to DVRs).
Each new service is rated by short- and long-term strategic importance, reasons for high or low importance ratings, number already deployed in each MSO's territories, and target revenue per sub (average and by MSO).
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