BSNL to launch IPTV in 3 months

By Praneeth • November 17, 2006

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Business standard: BSNL has commenced testing of its Internet Protocol TV (IPTV) service in Pune and soon bring IPTV to other metros and rural areas. BSNL has tied up with the Maharashtra Knowledge Corporation Ltd (MKCL), a state government company, for integration of information technology in education and DiviNet, an infrastructure and technology provider BSNL is looking at a revenue-sharing model with its partners DiviNet, which will provide the software, while MKCL would be an active partner in the rollout of the services and rolled out local partenrs in chennai and bangalore BSNL intends to provide music and video-on-demand, digital video recording, Internet, video calling and time-shifted TV (a technology that enables a subscriber to watch last one week’s TV programme) among others. BSNL have yet to come up pricing strategy Next in line to roll out IPTV Reliance Communications and Bharti Tele-ventures.

IPTV is popular because of its value-added services like video calling and its ability to offer TV shows days after they have been shown, a service currently not being offered by the DTH and cable players. IPTV can make an impact if broadband connections( approx 1.8 million in India) goes up, costs come down and infrastructure hurdels are overcomed. A revew on MTNL IPTV services: MTNL’s IPTV will cost consumers Rs 905 per month, while the lowest service will come at Rs 440 offers 30 pay channels and 30 free-to-air channels at a monthly payment of Rs 250 + Rs 75-125 as monthly rental for set-top-box (STB).

IPTV faces challenge from DTH providers Dish TV and Tata Sky which offer over 120 channels at Rs 180-200 monthly, including games, and other value added interactive services. value-added services on MTNL’s IPTV (150% costller than DTH providers)Dish TV charges Rs 45 for a movie-on-demand, Tata Sky offers the service at Rs 70 per movie. MTNL’s IPTV will charge Rs 200 per movie, almost 300% higher than DTH players