Friday, November 2, 2007

Ukraine IPTV Heating Up

The Ukrainian state telecom operator Ukrtelecom plans to launch an IPTV service together with the Independent Ukrainian TV Corporation. It will begin testing the service in December this year with a full launch expected in March or April 2008.

The service will be called U.tv and will offer about 100 Ukrainian and foreign channels and a video on demand service. Set-top boxes--some of which will be PVR enabled--will be provided on a rental basis and the group says it will price packages at a similar level to analogue TV services via cable. Ukrtelecom also plans to launch more new services, including a VoIP service called Ogo! Agent.

There are five other companies licensed for IPTV in the Ukraine: Comstar Ukraine (Stream TV) and Golden Telecom Ukraine, both daughter companies of Russian operators, as well as Ukrainian operators Cosmonova, Norma Plus, and No Plus.

Comstar and Golden Telecom have both already completed IPTV tests with Comstar planning start the its second stage of testing this month. It currently offers 40 channels and will increase the package to 60 channels. Golden Telecom says it will finish its field tests by the end of 2007 and launch a service early in 2008.

A number of factors are currently hindering development of the Ukrainian IPTV market. Operators currently require two licences (one from the telecommunication authority and another one from the broadcast regulator). Also the cost of set-top boxes at $250-$450 each makes the business case difficult at current monthly subscription rates.

TelcoTV is a global phenomenon. There is a lot of activity in the Russian Federation. I would appreciate comments from any readers who have first hand knowledge.

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