* The rules of core and edge networks are changing
At Globalcomm last week, Christine Heckart, Microsoft vice president of IPTV marketing shared some interesting perspectives that may support Bell Labs’ claim that video traffic will outpace data traffic in networks by the end of the decade.
At Globalcomm last week, Christine Heckart, Microsoft vice president of IPTV marketing shared some interesting perspectives that may support Bell Labs’ claim that video traffic will outpace data traffic in metropolitan-area networks by the end of the decade.
Heckart noted several trends that will contribute to increasing demand for video support on networks. Her observations:
* TV usage per capita is actually increasing.
* Viewers are increasingly using their PCs to access live video and video on demand, one such example is the recent Live Aid video event.
* IPTV as a two-way device is where PCs were in 1982 – and the opportunity to use the TV as a network device will be driven by converged and interactive video, data and voice services.
In a Microsoft-sponsored study, Heckart noted that in the United States, traditional telephony services providers can capture 13% market share of the television audience if they offer the same features at the same price as their cable competitors. If the service provider offers a 10% price discount when compared to cable, they can capture a 17% share. And if service providers add three interactive features without any price increase, they can gain a 20% market share over cable providers.
She contends the biggest opportunity for market share gain will go to those service providers offering features that connect the typical TV to the typical PC – the move to IPTV is all about connectivity.
Our observation: Perhaps the carrier edge network product upgrades and enhancements (as outlined in the previous newsletter) are being offered for more than just Internet connectivity and Metro Ethernet services. It looks to like the rules of core and edge network just might be changing in profound ways.
