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Telecom operator will begin in higher income neighbourhoods but sees IPTV as a way to deliver interactive, PC-type services through the television set, targeting lower income users later. Steve Hawley reports
Telefonica International is aligning its service platforms with the reality of consumer markets in Brazil, Peru and elsewhere in Latin America, according to Werner Schuler of Telefonica International in a presentation at IPTV World Forum Latin America. The company has been assessing which neighbourhoods in Brazil are best suited for initial deployment, and is expected to establish services in higher income areas, later spreading them into adjacent lower income areas.
Brazil will have a lively IPTV market. As Telefonica introduces phone/data, phone/IPTV and triple-play services in Brazil and elsewhere during 2007 and 2008, Brasil Telecom is also ramping up for launch. Widevine announced that Brasil Telecom had chosen its IPTV content protection system. That operator is also acquiring IP service assurance systems from IBM and Narus. As noted in IPTV News Analyst last month, IPTV also will be offered by Telemar and Terra once regulators permit. All of them will compete with the cable incumbent, Net Servicos, which has 48 per cent of Brazil’s pay-TV market, as well as Sky and Vivax.
Broadband penetration will grow to more than 80 per cent across Latin America in the higher economic segments most likely to buy pay-TV. However, policy efforts underway in Brazil are expected to have a positive impact in providing access to broadband video for lower economic segments. Pay-TV penetration in Brazil was at approximately 11 per cent, with broadband at about 17pc, according to Mr Schuler.
Several presenters at the event made note of how ubiquitous and popular TV is in Brazil, making TV an ideal vehicle over which to provide interactive and personal communications services that otherwise might be found on PCs, but are beyond the reach of many residents there. In addition to Caller-ID, services delivered to the TV screen will include shopping and a family finder that will locate people via their mobile phones.
More than half of Telefonica’s business is outside of its home market of Spain and the company’s presence in Latin America positions it to take advantage of a market potential, according to Mr Schuler, of more than US$ 1 billion in digital audiovisual services in 2009. This breaks down to 50 per cent for basic TV, 30pc content on demand and 20pc T-commerce.
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