Thursday, July 31, 2008

UTStarcom Video Advertising System in Guanxi

The Guanxi Telecom Company, a subsidiary of China Telecom, will use UTStarcom's RollingStream IPTV platform for a new interactive advertising system. The UTStarcom system will provide 3,600 concurrent IPTV streams in 14 cities initially. Set-top boxes will be deployed in supermarkets, department stores, office buildings, and in Guanxi Telecom's facilities.

UTStarcom stated that this system has two fundamental advantages. One is its ability to scale to a large number of screens. An IPTV system is designed to support hundreds of thousand of concurrent viewers, many more than the likely number of advertising screens.

The second advantage is its ability to provide unique streams to different groups of screens. Each stream is like a broadcast channel or a set of on demand content. IPTV systems are built so that each viewer can watch different programming, which enables the delivery of targeted content to each screen. This could be organized by store or even by department within a store.

UTStarcom has pointed out to the past that this kind of advertising is a big business with significant revenues attached to it.

UTStarcom is doing a lot of good work identifying other applications for IPTV systems. These applications can significantly enhance the revenue potential for these services.

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