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| Going Big-Broadband: The Case for Telco
as Video Content Provider |
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The local phone company’s business is
changing. The days of the local monopolies following the breakup of
AT&T are gone, as technological and market forces have put the local
exchange carriers (ILECs) on the defense in their core voice business,
and are now looking for ways to offer new services to keep customers
from going to alternative carriers. The biggest threat to the phone
company has originated from the cable Multi-Service Operators (MSOs),
who were first to offer wide-spread broadband services in the US and,
in many cases, have been offering voice services to the customers
to go with their video and data.
2004 can be called the start of the “big-broadband” era for
the telcos. They announced their first real serious initiatives to
deploy fiber across large swaths of their footprint. They announced
plans to build out video networks, even as they pushed resale agreements
for satellite video. Clearly, things are changing.
This report examines these changes and attempts to analyze the
case for telco as a content provider, focusing mainly on video services.
It is broken down in the following sections:
· Analysis of how core telco business is in serious decline
· The history of telco video
· The case for new telco video services
· A financial analysis of telco video (positive and negative
scenarios)
· Analysis of the major ILECs and IOC video plans |
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- Executive Summary
- Methodology
- Introduction
- Telco Core Business
Under Attack
- So What Now?:
It's All About the Bundle
- The Past: History
of Telco Video
- The Now: The
Telco Case for Video Content
- The Advantages
of Telcos in the Video Space
- All IP
network
- Switched
Network
- Unbundled
Video
- Four-Play
- Price Competition
- What About
the Hurdles?
- Can They
Convince Consumers?
- Must Convince
Content Providers
- Unproven
Technology
- Large Investment
Needed Without Guarantee of Customers
- Government
Regulatory Potential
- Eyeing the
Cable Guys
- The Financial
Argument for Telco Video
- Telco Video
Content Profiles
- SBC
- Video Offering
- Capital
Expenditure and Subscriber Expectations
- Network
Specifics
- Partnership
with Microsoft
- SBC and
Yahoo
- Verizon
- Bellsouth
- Independent
Operating Carriers
- Table 1. Telco
Phases From 1990
- Table 2. US Telecommunications
Revenues by Category 1999-2003 (in US$ Millions)
- Table 3. Current
Bundled Service Providers: Incentives to Buy Bundled Package
- Table 4. Breakeven
Analysis for Telco Video Investment (Positive Scenario) 2005-2010
- Table 5. Breakeven
Analysis for Telco Video Investment (Negative Scenario) 2005-2010
- Figure 1. ILEC
Access Lines 1984-2002
- Figure 2. Under
30 Adoption of Mobile Phones in US
- Figure 3. Local
and Toll Calls 1988-2002 (000s)
- Figure 4. ILEC
Revenues 1999-2003 (in US$ Millions)
- Figure 5. Bundled
Services: What Are They Bundling?
- Figure 6. Telco
Services Strength vs. Growth Potential
- Figure 7. Growth
Potential vs. Investment Required
- Figure 8. Cable
vs. Telco In Four Main Service Areas: Video, Data, Voice, Wireless
- Figure 9. SBC Fiber
Network Variants
- Figure 10. SBC
IP Video Network vs. a Broadcast Network
- Figure 11. SBC
Project Lightspeed Video Network
- Figure 12. Microsoft
IPTV Diagram
- Figure 13. Verizon
Fios Fiber To the Home Network
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