Wednesday, November 7, 2007

Swisscom struggling to add 20K IPTV Subscribers

Swisscom added again added 20 thousand new subscribers in 3Q07 giving it a total of 60 thousand subscriptions installed and on order. While its Bluewin TV IPTV subscribers are satisfied with the service's content, features, and usability, there is significant dissatisfaction due to technical issues.

Swisscom stated that it has already made major improvements that have resulted in:
  • Cut the relative call volume in half over the last six months.
  • Reduced order fulfillment time by one third
Swisscom has put its priority on achieving stability, which has kept the costs of the service high. It plans to improve the stability and quality of its IPTV system including connectivity, encoders, and its IPTV software system. It plans to install new encoders that will improve audio and video quality in 1Q08.

Swisscomm expects to reduce the costs to install its Bluewin TV service to about $650 per subscriber over the next year through a self install program that will include:
  • Line prequalification and self install
  • A lower price for a self install
  • A cheaper set-top box
  • Reduction of call volumes and efficiency improvements
It will be tough for Swiscom to achieve its goal of 100 thousand IPTV subscribers by the end of the year. It would have to double its rate and sign up 40 thousand more subscribers during the fourth quarter.

I wondered if Swisscom would tap into FastWeb's IPTV expertise at the time of the acquisition. It appears that Swisscom could really use the help to stabilize its service.

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