IPTV..India and Global market

Its a big time...All over the industry, people are talking about the IPTV. Research papers and forecasts every where. So what is this IPTV? How its going to affect the Indian market? Is it really worth investing into the same? There are lots and lots of such questions revolving around the industry minds. Europe and Americas already started investing into the IPTV Business. Even our India started attacking the same market, when Airtel tied up with UTstarCom (My Last post). Looks like even others are trying to get in.
I have been thinking about this market in particular for a month now. With DVB-H, one of the sister technologies coming up in Mobile phones, I got wooed into the technology and I started keeping an Eye on the same.
So What is IPTV?
Let me first explain to newbies about IPTV. IPTV expands to Internet protocol Television. Is this something like HDTV(High Definition Television) or some other new TV. If that's a question in Mind, then its a bit to give straight forward answer for that. But let me try to put it this way. IPTV is another technology of broadcasting channel through Internet. Does that make sense? Basically its in digital format. So your existing analog television may require a new kind of Set Top box called IP Set top box. Coming back to the Technology part. Just like you send data through Internet, the broadcasters will use the Internet as a medium to send you the data. Internet can be any other network as well. So each and every TV system in the network will have an IP address. Thus the possibility of higher interaction between broadcaster and your TV. Thus igniting the possibility of a new Jargon called T-Commerce (in the lines of E-commerce). T-Commerce is nothing but TV based commerce. So now there is a possibility of buying the things right through your TV Set. Interesting right? Though it seems interesting the initial researches show in US by some Research institute show that only very few people( around 15%) will buy products through their Television. lets see how it goes. The high end IP set top boxes come up with Personal video recorders. Hence you can record your favorite programs to your Hard disk. Does this make you think any thing in the lines of piracy? Generally all these data is highly encrypted. But does that really matters for real crackers/ Hackers? Let them think over it.
   Since things through Internet, there is very very high possibility of viruses. So Antivirus companies start working in the lines of Antivirus for TV. As technologies grow obviously Piracy and hacking grows, resulting in security concerns and obviously giving way for new market areas.
Is IPTV going to affect India in a big way?
Well Airtel is the first in trying out this one in India. They are trying IPTV in around 50 houses near Delhi and doing some high end testing. That's a sort of good news for the TV enthusiasts. Let us try to analyse on the Indian Market. Most of these TELCOs have already connected most of the urban houses. State owned BSNL is doing pretty well in connecting the rural India as well. So the connectivity part is already present. Now the questions of equipments these broadcasters need to have. From the broadcasting end, It is mandatory that they need to have some streaming servers. Of course these are not so costly when compared to satellites!. So the companies would be interested in entering the market, of course a low investment but obviously a gamble. But the ordinary people needs to have IP Set top box. That is the real catch. Looking at the present scenario, no household is interested in going for Set top box. Even the Cable TV people don't encourage the same. But the things may really change if they come up with some new marketing mantra. I am Just extrapolating what I saw in the case of broadband in India. BSNL's concept of giving the broadband for very cheap price did hit the market in a real constructive way. The problem that existed was the ADSL modem. But BSNL overcame it with the "Modem for rent model". A low cost ADSL modem for rent really worked out well. But broadband is driven by the factor called necessity, But not the IPTV. That would be a real argument that could weaken this case study comparison. But Instead of ADSL modem alone, what if a IPSTB that also works as a ADSL modem. So TV on your computer. But the percentage of people who opted for TV tuner cards is very less. So will it work out? But If there is a possibility for the same device to give a TV OUT...Bingo, that would solve all the problems right? Convergence to the core will keep the things in place. This is the case of "where there is a will there is a way". So its comparatively easy for TELCOs to survive in India than other operators.
Now Is it really worth investing in IPTV?
The most tricky question. I ll try to speak about the global market here, as I have already hinted about the Indian market. Almost all the market research papers are talking about a possibility of a over crowd in this market. So is it really worth entering the crowd? First in market does make sense. But making the customers sticking to your product is the toughest job. So the thing that is going to work out is the difference you create in your product. The different flavour that tastes good. I am not hinting more on the flavour, its upto you to come up with an unique idea. Unlike Indian market western nations already have the mandatory Set top box system. So coming up with a IP Set top box and trying to sell need some real Guts. You would a customer go for one more set top box? That is absolutely ruled out. But he may go for a replacement of his box, if the new box provides his accustomed programmes plus some more new features. I could think of two ways of doing this. One is all the satellite channels will be broadcasted through Internet or your box has the capability of supporting both IPTV and classical way. I guess the second one does makes sense. Now the companies like Yahoo and AOL can also enter the market. I believe if you have a catalyst that accelerates the time to market and gives you a necessary flavour then you must enter, else I would suggest not to enter this overcrowded market
Google...Another competitor?
   I have a strong feeling that Google may venture into this. Plans of Free Wi-fi access can bring up the customer base. Google video becomes a medium of a source as a kick off. The database system (Google Base) of course will help them in this. of course the Adwords makes some sense when seen through an angle of T-Commerce. Is really something brewing like this. Time has to say.