Come Play With Me Not Once, But Thrice! PDF  | Print |
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Triple-play: hype or reality?

But no service in India can ignore the ground reality that prevails outside Indian metros. In this context, Patil opines that he wouldn't equate triple-play with convergence if merely some parts of metros avail it, while the rest of India asks: 'Triple-play kya hai, bhai?' ('What is triple-play?')

There are only a pathetic 2.67 million 256 Kbps broadband subscribers, compared to 200 million-plus mobile subscribers in India today. Triple-play is still lying in the test labs (albeit at an advanced stage of rollout) of telecom companies other than BSNL/MTNL, which have launched their services. So Patil believes that triple-play is just big hype in India. Nonetheless, pointing out how Indians have experienced - and seem to be very happy with - direct-to-home (DTH) television, and the content on cable TV, he emphasises that the need of the hour is to push broadband aggressively, as a standalone or bundled service.

Again, is this easier said than done? In other words, is enabling triple-play in India more about the technicalities of offering broadband, or is it about establishing an effective business model that incorporates effective back-end processes, sufficient customer care support, an attractive price, and the right billing platform to address varying subscriber demographics?

Citing the findings of research done at the Institute of Finance and International Management (IFIM), Prof Chowdry says that enabling triple-play requires both. Initially, it is about the technicalities of offering broadband, but this affects existing companies in such a way that their business model stands to change dramatically (as in the case of cellular service provider, Verizon). As other examples, he points out that if Reliance successfully implements fibre optic cables for the last mile, it will effectively become the strongest triple-play company; or if WiMax technology is successfully implemented, it will affect the business model of all the existing players.

Technical vs business challenges

Allimatti also identifies poor last-mile connectivity as the major technical problem standing in the way of triple-play. In fact, he believes, "Unless the bandwidth offered to homes is reliable, and higher (at least 1 to 2 Mbps) than that offered today, it would be difficult to roll out successful triple-play services. "From the business perspective, he sees low broadband penetration [subscriber density] as inhibiting triple-play rollout. "Service providers do not immediately see a huge number of subscribers availing these rich services, so triple-play doesn't make a good business case," he says.

Stressing the importance of both the right technology and an effective business model to fuel acceptability, Paul emphasises that service providers need to choose a cost-effective scalable futuristic technology that establishes a solid broadband infrastructure. "On a wired infrastructure, carrier Ethernet has the potential of futuristic technology, high scalability, and lowest cost per bit. On wireless, emerging technologies like Wimax and Ultra Mobile Broadband (UMB) have the potential to provide triple-play services," he muses.

The tussle between cable operators and telecom providers

But there is another facet to triple-play services that is likely to highlight convergence of another kind-partnerships. In India, we have heard of Punjab-based Himachal Futuristic Communications Ltd (HFCL) and Infotel, and Orissa-based Ortel Communications Ltd as telecom providers entering the fray, just as our top three cable operators' Siticable, InCable and Hathway.

However, as Allimatti correctly points out, "Acquiring and distributing content is also a challenge for the service [infrastructure] providers, as it is not a business they are familiar with. [So] content aggregators and content creators will also see greater empowerment in the emerging scenario."

Perhaps that is why state-owned MTNL has tied up with Time Broadband Services, to source video content. Is this difficulty likely to give cable operators an edge in enabling triple-play services?

Apparently not, as most panelists believe telecom operators will race ahead. Paul lists the absence of cable infrastructure around data capabilities as a major reason for the supremacy of telecom providers, followed by the fact that as voice is an integral part of triple-play, telecom operators are better positioned to service this.

Bhattacharya concedes that today cable TV reaches out to many more subscribers than the telephone, but still cites the multiple benefits offered by the telecom network. These include two-way interactive gaming, the rapidly-increasing telecom network (mobile growth happening at almost 80-90 million per annum), and the advantage of an 'anywhere, anytime' service, as reasons that will make mobile and telecom providers the future leaders in this segment.



 

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