Ronnie05's Blog

The Telco versus Broadcast battle

Posted in The future Telco by Manas Ganguly on June 11, 2014

I am blogging after a long time – – on a break evaluating couple of priorities and a new avatar possibly

As I write this, there are couple of things happening in the Indian telecom industry level

1. Reliance Jio is investing in a FTH (Fibre to Home) network mesh.
a. I am assuming that this being a costly exercise will be limited to top 40 towns and most possibly to residential and office densities.
2. Telcos such as Airtel, Reliance and Idea are aggressively investing in media houses.

If you put the two together, there appears a paradigm in the near future, where Telcos of the current day morph into broadcasting organizations – offering data, voice-over-data/telephony and television. Most of us have heard of triple play services – but given the erratic nature of Indian networks coverages and the widespread geography – these have never fulfilled into real time.

FTH operations will allow Telco model migration to broadcasting model. Why do I call this broadcasting model? Because these will typically involve a larger eco-system to share holders – targeting a customer and in return subsidizing services.

Sample this: “Super A” category localities get different TV ads versus Sec.A localities. So for the same program, a “Super A” category individual gets to see a Jaguar Ad where as a Sec.A locality person sees a Corolla Ad.

What is the potential of this? Google created the No.1 company of the world, basis online analytics. Broadcasters/Telcos have the opportunity to create more wealth by combining geography/location, content, analytics, real-time onground profiles of users. Additionally, Telcos cater to one platform at a time, Broadcasters will typically be multi-platform presence.

Is it a Telco battle in the first place? It would be the hybrid Broadcaster Telcos to initiate this change to broadcasting – there first level revenue pool would be the core Telcos. There would be a disruptive pricing across all current voice and data plans. Plain Vanilla Telcos will have difficulty in preserving revenue/profit pools in the face of such disruptive pricing. The user subsidy would be made good with advertising revenues from the service. The multiplicative effect on advertisements from multiple screens and the analytics would drive the advertising revenues. Depending upon the plan scalability, the ad revenues would account for service subsidy as well as the bottomlines for the broadcasters. Then there could be the fillip to online / digital wallets – we shall mention this as fringe benefits.

It is the Telco’s battle to loose anyway. There could a few questions about laws and regulations – but they are all expendable and changeable – we all know that, don’t we?

ABI Research: Global Pay TV Service Revenue to Reach USD 245 Billion in 2013 with Telco TV Service Gaining Bigger Market Share

Posted in TV and Digital Entertainment by Manas Ganguly on September 10, 2013

ABI research suggest that the global Pay TV market continues to grow in the first two quarters of 2013, adding 23 million new subscribers for a 3% increase. In particular, telco TV and satellite TV growth was robust while cable and terrestrial Pay TV services experienced virtually flat growth.Worldwide Pay TV subscribers will reach 895 million by the end of 2013, to generate service revenue of USD 245 billion.

Pay TV market growth is expected in all regions of the world in 2013, although Asia-Pacific will continue to be the main contributor of subscriber net additions. The North America Pay TV market is growing at its slowest rate because it’s already saturated with more than 80% penetration; furthermore, it is weathering headwinds from alternative web-based TV services. The growth in the North America Pay TV market will mainly be driven by the region’s increasing telco TV market.

North American telco TV operators, such as AT&T and Verizon, have demonstrated strong subscriber additions in the first half of 2013. ABI Research forecasts that more than 1.5 million telco TV subscribers will be added in North America in 2013 to reach 11.9 million subscribers. The region will generate service revenue of USD 10 billion from telco TV service in 2013

Globally, telco TV service revenue market share will increase more than one percentage point to capture 14% market share. However, cable TV service revenue market share will decrease to 47% in 2013 from 48% in 2013.

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