How do you launch an IPTV/OTT business?

Who has an easier time integrating IPTV?

It’s easiest for internet providers. They will need a head-end station, an antenna field, servers, and transcoders, and then there’s the billing system that needs to be integrated and middleware to be deployed. The operator’s LAN cable is in every household already, and chances are there’s a Wi-Fi router there, too. So, subscribers purchase a set-top box or a service accessed through their Smart TV.

Cable operators can’t transition to IPTV because their network does not support IP packets. The technology has already reached its ceiling — although one indeed can bring the cable services to a new level, it’s just an imitation of IPTV. It’s just a short-term strategy. In the age of personalized content and increasing customer expectations regarding quality, it’s bound to reach another ceiling, and then there’s no way through it. As Craig Charles once said, cable operators need to “evolve or die”. It’s all up to them. The only happy ending here is through a merger or takeover.

The situation with HFC networks is somewhat more optimistic. The signal between large neighborhoods is transferred via fiber-optic cables, and digital is converted to analog once it enters the household. Operators like these have an easier time transitioning to IPTV. DOCSIS technology is optimal for them — in revision 4.0 it supports symmetrical channels with speeds up to 10 GBit/s, and it’s just what you need for IPTV.

There is no market where cable would maintain presence after a multiplay operator has entered. Often, major players just take over these companies.

Do IPTV operators need to migrate to OTT?

To broadcast to mobile devices and smart TVs, IPTV operators need a hybrid platform and branded apps. The last mile between the device and the network has physically changed. Before, set-top boxes were connected to the network with a physical cable. Users were willing to lay cables all around the house, fixed to the walls, and hide wires under the skirting boards. Now they buy smart TVs with Wi-Fi, Netflix, YouTube, Amazon, and Hulu. The question is, why would you need a separate set-top box in this case? Content delivery methods are changing, so regular operators are getting closer to “over the top”.

In cities with high-rise buildings, there’s a router in every flat. Some people keep their routers in wardrobes, on the floor or near the flat entrance and get a weak signal when they want to connect. But even if this problem is solved, you can’t have clients on separate channels like 1, 6, and 11, or at least 1, 5, 9, 13. There’s also interference with other routers and Bluetooth devices to consider. It’s extremely difficult to manage wireless networks.

Operators can’t guarantee that the last mile will be obstacle-free. Therefore, OTT is the last link in the chain, and you need new data management systems for access quality management.