Wednesday, March 12, 2008

NEC to offer IPTV System

NEC will launch an IPTV system to the international market. It expects that this system will generate 50 billion yen ($US488 M) in sales by 2010. This IPTV system will include:

  1. NEC products, from network architecture to delivery servers and household terminals, which will make it possible to guarantee the Quality of Service (QoS), Quality of Experience (QoE) and advanced security demanded along with interactive services.
  2. Release of a video on demand server in April as the core system for new IPTV solutions.
  3. PCCW/CASCADE's "QualiTVision*" middleware which has enabled IPTV deployments in Hong Kong and Thailand.
NEC is coming late to the game. Nearly all of the major carriers have committed to their IPTV architectures. Its opportunities are likely to come from Eastern Europe, the former Soviet states, Latin America, and the developing countries in Asia. Penetrating China is likely to be difficult for NEC, but it still may have some opportunities in India.

4 comments:

Michael Gold said...

Hi, I'm not sure but I think it might be just wrong to call NEC "late to the game" in IPTV. NEC claims to be "at the heart of" PCCW's Now TV in Hong Kong, which is certainly one of the largest IPTV deployments and has been in service since 2003 (or since 1998, depending on whether you count its predecessor service, HKT's iTV, which PCCW acquired).
http://www.nec.com/global/solutions/nsp/msan/casestudy.html
http://sciencelinks.jp/j-east/article/200103/000020010300A1036110.php

Bob Larribeau said...

Michael,

Fair enough. PCCW used the NEC ATM DSLAMs to support its IPTV service from the start. However, this is the only IPTV activity that NEC was involved in that I am aware of until this new ecosystem was announced. A lot of the opportunity that was there has now been taken by others.

Bob

Michael Gold said...

But, NEC says its DSLAMs are more than what I normally think of as DSLAMs. They don't just multiplex DSLs from a SONET. According to NEC's promo video, "At the heart of the system is the platform, DSLAM...which handles program selection, billing, and records what subscribers are watching...For PCCW, the NEC DSLAM's invaluable function in tracking what the specific subscriber is actually watching gives unique insight into both what programming Now TV should offer and to what advertisers they should be selling"
http://www.youtube.com/watch?v=3lJOArjWQsQ

To me, calling that a DSLAM is like saying you make wheels when you really make cars. Anyhow, assuming all that is true, there's OSS and CRM going on there, not just multiplexing. The YouTube video implies (but doesn't actually say) that there's a service-creation platform there, too (they give the example of the cinema ticketing application). I don't know what exactly to believe. But I think you had an MRG headline in March to the effect of "NEC re-enters IPTV business", which is closer to my view.
http://www.mrgco.com/investors.html#0308_NEC

Another thing: I do recall that NEC provided STBs (this might have been 1995 or so) for the trial network that preceeded HKT's iTV, which itself preceeded Now TV.

On related note, readers might be interested to google NEC's acquisition (in progress) of NetCracker, a company that has some interesting ideas about IPTV OSS.

This is a great Web site, by the way.

Bob Larribeau said...

Michael,

Thanks for the compliment.

I will just say two things. One is that the NEC DSLAMs are not doing anything more than any other DSLAM is doing. There was nothing unique cited in the video.

The other thing is to be careful how you interpret TV commercials.

I am happy that NEC is in the business now. That is what is imporrtant.

Bob