Malaysia's YTL Communications will launch on 18 November its Wimax network built with Cisco, Clearwire, Samsung and GCT. By the end of 2011, YTL plans to offer a quad-play service, with the TV element delivered by the American company Sezmi. Sezmi makes a hybrid set-topx box with a digital terrestrial TV tuner. It competes with the following products, among others:
- Boxee from D-Link. To launch within a few weeks worldwide.
- Yuixx from the Dutch company Conceptronic. Introduction planned soon for the Netherlands and Spain (software developer Metrological will speak about this on 13 October at our broadband conference).
- Onyx, a box from UK software developer Oregan Networks, which will be adapted for use by Telefonica on the Spanish market.
- Freedom box developed by Amino and to be used by Telecom Italia.
- Netgem hybrid STB for customers such as Telekom Slovenije and Telstra.
- Apple TV, a media player lacking a broadcast component.
- Google TV, a software product (see our commentary 'Google TV marks important step with content deals' and our Research Brief 'Google TV'), with Dish Networks, Logitech and Sony as partners.
- Xbox 360 from Microsoft, which works as a hybrid STB for AT&T U-verse (VDSL) customers and with Canal+ in France.
YTL is a notable story given the current trends of OTT, Wimax and quad-plays, for the simple reason that it brings together all these elements. YTL says, full of pride, that the quad-play 'will be the first of its kind in the world', although this is still to be seen as the end of 201 is a ways away, especially in terms of connected TV.
Also notable is Sezmi's international expansion, just as the competitors named above, and that the operator is considered suitable as a distribution partner. Of the abovementioned parties, most have an operator partner (see our Research Brief 'Distribution as a scenario'), except for Boxee and Yuixx. A 'direct-to-consumer' strategy can work, but a brand name like Apple is needed. Various reports point to Apple TV being sold out already in the US, but it's highly questionable whether Boxee and Yuixx can have the same success without partners. Working with an operator means a strong distribution channel, while the operator can look forward to revenue sharing. It's not difficult to see that video-on-demand spending will migrate largely to the provider of a hybrid STB, assuming an attractive visual video store is offered. This can drive operator ARPU - the one thing they are always looking to grow.
YTL's choice for Wimax may appear unusual, but it many Asian countries the technology is doing well. The UK's i3 Group also plans to test Wimax, as an addition to its FTTH network being rolled in the sewers of cities such as Birmingham and Dundee. i3 will deploy a hybrid Wimax and FTTH network in the north of Wales. Sezmi appears, via its deal with YTL, to now be a potential partner for (mobile) service providers worldwide to add TV and video to their portfolios, but the competition certainly will not stand still.
