Concern over poor IPTV picture quality

MADRID: Picture quality is the top concern for prospective IPTV customers, according to an independent research study conducted by InsightExpress on behalf of SupportSoft, Inc., a provider of Real-Time Service Management (RTSM) software.

The 2005 study polled European ADSL customers in six countries about their perceptions in receiving TV service from their telephone company. The number one concern expressed by respondents was "poor picture quality."

A separate study conducted in the United States reinforces the European finding, with poor picture quality identified by nearly 39% of American DSL subscribers surveyed as

their top concern, should they receive IPTV services from their telephone company versus their local cable or satellite company.

Perspective provided by Informa, a UK-based telecommunications research firm, underlines the importance in resolving consumer quality concerns among digital service providers in deploying the "triple play" of IP-based video, voice and high speed data services.

Informa's Adam Thomas observes in a recent report that, "The priority for IPTV is to provide the basic service quality - in terms of picture and sound - that

viewers have come to expect from other platforms. Only once this is established should IPTV operators try more sophisticated offerings. The driving force behind IPTV is the telecom sector's need to move away from 'plain old telephony services' (POTS) an area in which it is becoming progressively more difficult to turn a profit."

Bundling IPTV with other services as part of the triple play can contribute to unique installation and customer service problems that undermine profitability. Informa analyst, Matt Ablott, outlines this conclusion in a recent report. He asserts that ". . . faults common to newly launched IPTV and VoIP service . . . could cause customer-support costs to eclipse any revenue gains and actually increase churn."