Setting the path for consumers in India to get access to television content over broadband internet, the government approved guidelines for allowing broadcasters to share their content with Internet Protocol Television (IPTV) providers. The present norms allow broadcasters to share their channels only with cable and direct-to-home platforms. IPTV service will not be costlier than DTH or cable providers as the government has also made it clear that that IPTV provider would get channels from broadcasters as per broadcasters’ rates fixed by TRAI.
IPTV is a new platform for delivering television content using an IP network and high speed broadband technology. The rapid development in telecom technologies along with increasing digitalisation of broadcasting is driving services like IPTV. For consumers, the move will mean access to interactive content on what will be a two-way link, enabling services such as video on demand, time shift TV, group-gaming and interactive advertising.
The decision to amend the laws is likely to benefit telecom players such as Bharti Airtel, Reliance Communications and BSNL. MTNL had already started offering IPTV services in Mumbai and it would have first mover advantage. BSNL has also entered into a tie-up to make a foray into IPTV service.
Internet service providers (ISPs) whose net worth is more than Rs 100 cr will also be able to offer the services. However, only two or three ISPs would be able to offer this service, as only those many have net worth above the prescribed limit. Broadcasters would however benefit to great extent as the current cable and DTH platforms are struggling to carry more than 200 channels, while there are 360 channels with down linking permission waiting on the anvil, which will be benefited by IPTV. The IPTV platform also presents cable operators an opportunity to move closer to complete digitization and also offer a service with potential for higher billings per customer.
Telecom Regulatory Authority of India (TRAI) had submitted its final recommendations for IPTV to the Information and Broadcasting (I&B) Ministry several months ago, but it got approval only now. The other recommendation to increase foreign direct investment (FDI) in IPTV services to 74% as opposed to the current 49% in the cable sector has still not been approved. The regulator also authorized the department of telecommunications (DoT) to permit any telecom licensee to provide IPTV services. Any cable operator registered under the Cable Television Network (Regulation) Act, 1995, also does not need an additional license for IPTV services.
The content transmitted on IPTV will come under regulation by multiple agencies. While, the ministry of I&B will ensure adherence to the programming and advertising code, the ministry of communications and information technology and DoT will monitor the Internet content as per the IT Act of 2000.
With 40 mn landline connections capable to deliver IPTV, the future looks bright for the service. According to a December report by industry body ASSOCHAM and consultant Ernst and Young, IPTV will garner one million subscribers by 2010.
IPTV is a new platform for delivering television content using an IP network and high speed broadband technology. The rapid development in telecom technologies along with increasing digitalisation of broadcasting is driving services like IPTV. For consumers, the move will mean access to interactive content on what will be a two-way link, enabling services such as video on demand, time shift TV, group-gaming and interactive advertising.
The decision to amend the laws is likely to benefit telecom players such as Bharti Airtel, Reliance Communications and BSNL. MTNL had already started offering IPTV services in Mumbai and it would have first mover advantage. BSNL has also entered into a tie-up to make a foray into IPTV service.
Internet service providers (ISPs) whose net worth is more than Rs 100 cr will also be able to offer the services. However, only two or three ISPs would be able to offer this service, as only those many have net worth above the prescribed limit. Broadcasters would however benefit to great extent as the current cable and DTH platforms are struggling to carry more than 200 channels, while there are 360 channels with down linking permission waiting on the anvil, which will be benefited by IPTV. The IPTV platform also presents cable operators an opportunity to move closer to complete digitization and also offer a service with potential for higher billings per customer.
Telecom Regulatory Authority of India (TRAI) had submitted its final recommendations for IPTV to the Information and Broadcasting (I&B) Ministry several months ago, but it got approval only now. The other recommendation to increase foreign direct investment (FDI) in IPTV services to 74% as opposed to the current 49% in the cable sector has still not been approved. The regulator also authorized the department of telecommunications (DoT) to permit any telecom licensee to provide IPTV services. Any cable operator registered under the Cable Television Network (Regulation) Act, 1995, also does not need an additional license for IPTV services.
The content transmitted on IPTV will come under regulation by multiple agencies. While, the ministry of I&B will ensure adherence to the programming and advertising code, the ministry of communications and information technology and DoT will monitor the Internet content as per the IT Act of 2000.
With 40 mn landline connections capable to deliver IPTV, the future looks bright for the service. According to a December report by industry body ASSOCHAM and consultant Ernst and Young, IPTV will garner one million subscribers by 2010.
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