Brasil Telecom's FTTH IPTV Strategy

TV Telco Latam published and article describing Brasil Telecom's plans to deploy FTTH to support IPTV services in six cities before the end of 2008. It will focus its FTTP deployment on the most prosperous neighborhoods.

The company currently offers IPTV over ADSL-2+. This service is not profitable today because regulation restricts it to video on demand service. It expects that new legislation will lift this restriction.

Brasil Telecom is following the example of other developing countries and moving directly to FTTH access networks. However, IPTV will not be a financially viable service in Brazil until it can offer broadcast content as well as video on demand.

Brasil Telecom Launches IPTV

Brasil Telecom launched its Videon IPTV service in Brasilia, the nation's capital. Brasil Telecom is the third largest fixed line carrier in that country. The Videon service is a video on demand service. The regulator in Brazil does not permit the telcos there to offer broadcast services. The company will offer the video on demand content on a pay per view basis and as a subscription on demand package that provides up to 500 hours per month.

Brasil Telecom is testing the response to this service in Brasilia and plans to expand to other large cities later.

Telefonica Brasil has been reported to be working on an IPTV service in Sao Paolo. Oi, the largest carrier in Brazil has stated that it is investing $150 million on an IPTV service in Rio de Janeiro.

Brazil is becoming an active IPTV market. It will be held back, though, until the regulators permit the telecom companies to offer broadcast services.