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Hybrid IPTV, DTH satellite systems offer fast, affordable market entry, says report

Telecom operators could lose forever their opportunity to gain market share over the next two years if they delay any further in moving into the TV content business, according to a new report from management consultancy firm Arthur D. Little.

The report, “Taking Advantage of the Best of IPTV and SatTV,” foresees a rapid transition away from linear TV viewing to an on-demand, ad-hoc consumption model, propelled by consumer acceptance of personal video recorders and on-demand television.

Telecom operators can capture a part of the content market if they take on the role of content aggregator, offering on-demand services to viewers so they can access a variety of programming while simultaneously expanding coverage with hybrid DTH solutions, the report said.

The report finds an IPTV/DTH hybrid to be the most cost-effective, market-ready option for telecoms providers to bring to market. It identifies a range of scenarios for bringing these hybrid TV offerings to market, and finds that the initial investment required for satellite TV roll-out compares favorably to the cost per subscriber necessary to further develop pure IPTV services.

The disadvantage of pure DTH solutions is the lack of the back channel allowing interactive services. By combining the advantages of providing a low Capex broadcast solution through DTH and an IP back channel for interactive services with low bandwidth requirements, interactive services could be offered with close to 100 percent coverage, according to the report.

To read the report, visit