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Triple Play: Australian Telcos Standing Still, Says IDC

  • 12 October, 2006 10:16

<p>NORTH SYDNEY, 12th October 2006 - IDC’s latest digital home research finds that telcos around the globe are facing serious challenges in the broadband Internet access market, as price competition continues to intensify. In the past two years, the market has witnessed various triple play deployments in the United States, Europe and Asia telecommunications markets, with many telcos offering the bundling of data, video and voice over IP. However, this year, many of them are starting to evolve from triple-play to multi-play offerings as they realise the need to advance beyond triple-play to maximise average revenue per user.</p>
<p>IDC's study, titled "From Triple Play to Multi Play: Comparison of Australian Telcos and Overseas Best Practices," finds that France Telecom is currently leading the evolution from triple-play to multi-play. The French incumbent is moving beyond the mere bundling of data, voice and video to include additional value added services such as multimedia streaming and home monitoring services. They are positioning the home gateway as the cornerstone of home communication and entertainment. Other country incumbents such as KT, AT&amp;T and PCCW are fast followers, with a strong focus on innovation. Australian telcos are treading behind. Neither Telstra nor Optus have committed to offer triple play services whereas its overseas peers are already moving forward with multi-play.</p>
<p>This study compares triple-play and multi-play services that are offered by telcos around the globe. The focus of this study is to benchmark Australian telcos against best practices around the world, highlighting the international trends that may apply to the Australian telecom market.</p>
<p>IDC has found that broadband developments in the past four years in France point towards a sequence, where competition spikes off innovation, and the advances in service offerings lead to upgrades in network infrastructure. Australia is still in the early days of the "competition" phase, and should Australia follow the footsteps of France, Australians will see innovative services from local telcos in the next two years.</p>
<p>"In France, Iliad, an alternative Internet Service Provider (ISP), was the first to market a home gateway service back in 2003, which seriously challenged the incumbent, France Telecom. The innovative services spurred by alternative ISPs urged France Telecom to pursue their own home gateway strategy," said Sophie Lo, IDC's Analyst for Consumer Digital Markets. "As both telcos are churning out innovative services, most of which are multimedia and entertainment oriented, there is an increasing need for more bandwidth, leading France Telecom to test Fiber-To-The-Home (FTTH) in mid 2006, and Iliad to announce the roll-out of a FTTH local loop," added Ms. Lo.</p>
<p>IDC Definitions</p>
<p># Triple-Play Services: The bundling of data, voice and video over a broadband connection.</p>
<p># Multi-Play Services: The move by telcos around the globe to include other value added services such as multimedia streaming, home monitoring and fixed to mobile convergence services on top of triple-play services.</p>
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<p>For press enquiries please contact:
Sophie Lo
Market Analyst, Consumer Digital Markets
Phone: 61 2 9925 2206
Email: slo@idc.com</p>
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<p>IDC research:
http://www.idc.com.au/research/document.asp?document_id=AU65C41040601</p>
<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email gclarke@idc.com or phone 02 9925 2226.</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/release.asp?release_id=257</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>
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