IBM and Cisco have formed a partnership to address the Tier 2 and Tier 3 carriers implementing TelcoTV services in Europe. While the Tier 1 carriers in Europe have already set their strategy, the company sees significant opportunities with the smaller carriers, especially in Eastern Europe and the Middle East as we as some carriers in Scandinavia. Their first joint deal is with Dansk Bredband in Denmark.
Cisco sill provide networking products, Scientific Atlanta headend systems, Arroyo video on demand servers, as well as home gateways and set-top boxes from Linksys and Kiss.
IBM will provide business and technical consulting services plus a vendor finance package.
The two companies will also include middleware from Kasenna and content protection from Verimatrix as part of their TelcoTV offering.
IBM and Cisco have complementary roles, so this combination makes sense for both companies. However, while the Tier 2/Tier 3 market is quite active, the Tier 1 carriers will have most of the subscribers and will account for most of the spending in most product categories.
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