Nokia Siemens Networks presented a new IPTV platform at the IPTV World Forum in London. The system opens up the possibilities for input and output, going beyond just live TV to support recorded content, VoD and catch-up TV. Consumption is also no longer limited to the TV set, but can also occur on a computer or mobile phone. Additional advantages of the new platform are open development, the ability for operators to send personalised messages to subscribers, quicker channel changing and improved image quality.
The new NSN system seems to answer directly to KPN's Fiber Update in December, although KPN is of course just one customer for the equipment maker. Feedback on the TV over FTTH service showed two problems: slow channel changing and the lack of BBC 1 and 2. It was also announced then that NSN was busy improving the platform.
It's not surprising then that the new NSN platform solves the problem mentioned by KPN of slow channel changing. Is channel changing even that important in the digital world? Users have a better choice of content and less need to 'channel surf' to find something to watch. Digital offers acces to more, and on-demand, content, as well as electronic programme guides where users can quickly find and go directly to the channel they want.
NSN can't solve the BBC problem, and this is a major hole in KPN's TV package versus offerings from cable operators and the TV package at Glashart Media (previously Hertzinger). This subsidiary of Reggefiber FTTH (in which KPN has a 41 percent stake) offers a TV package for Reggefiber's services providers, XMS and Edutel. KPN is at a disadvantage to these service providers, although they still have a very small market share.
Success on the TV market is crucial for KPN. Triple-play is a clear success on the Dutch market, and the cable operators have already taken the lead. Not only do they have a good TV/video product, they also offer the fastest broadband. It's important for KPN to present a strong triple-play offering, which preferably competes on more than price. KPN can only compete with cable on the broadband market in areas where it offers FTTH. Elsehwere, it's relying on VDSL2, which is inferior to Docsis 3.0. At the Fiber Update presentation, KPN appeared skeptical over whether it can compete on the basis of content, as in principle all players can buy in the same programming. Still, there are some possibilities, and a first-mover advantage will be important as cable increasingly overtakes the DSL market. The ingredients are a plentiful VoD catalogue and access to over-the-top content.
Whatever the case, KPN should be happy with the improvements that NSN has made. The quality is improving (although KPN did not receive any complaints about this in the tests last year) and the service possibilities are increasing. The introduction of operator-to-subscriber messaging is clearly just the start of all the new applications that digital TV can deliver, such as targeted advertising. This will make TV truly interactive, unlike what operators such as KPN and Ziggo currently try to market as interactive. To date, interaction is largely limited to a touch of the remote control to select a programme or vote for a candidate in a game show.
NSN's new system will also deliver cost savings. KPN has chosen to no longer use the second fibre in FTTH, which is deployed as standard by Reggefiber for analogue TV. The Dutch operator is focusing entirely on digital TV, and as a result multi-room customers must be offered a second set-top box or Digitenne subscription. KPN apparently sees the IPTV platform as NSN envisages: ‘Nokia Siemens promises TV on any screen’. This multi-screen approach is not new, but it will work out well for KPN that NSN is not only its partner for IPTV (both over FTTH and ADSL2+ and soon VDSL2), but also for mobile TV (over DVB-H) and digital terrestrial TV (over DVB-T: Digitenne). This will generate efficiencies and synergies and also allow for new services. It can't be long then before KPN comes with a quad-play offer, adding mobile telephony to the triple-play.
