Abstract
Over the past decade, incumbent telecom operators in the Asia/Pacific region
started to see their revenue growth from traditional businesses slow down with
a narrowed profit margin, due to increasing competition brought about by
deregulation. The distribution of television over Internet protocol (IPTV) is
being viewed as a value-added service with strategic importance in the future
broadband service portfolio to increase the ARPU and preserve user stickiness.
Today, due to improvements in video compression algorithms and advancements in
access network technology, telecom operators can effectively deliver a
superior television experience over wire lines. Despite the significant
capital expenditure required, many regional incumbent operators such as China
Telecom, PCCW, and Chunghwa Telecom have announced deployments, or have
already deployed, IPTV services in their markets. In fact, the Asia/Pacific
region is leading the global revolution of IPTV in terms of infrastructure
deployments, applications development, and subscriber adoption. The region's
broadband penetration helps to foster the fastest growing IPTV market, with
ADSL or FTTx broadband connections with at least 6.0Mb/s to households is
further spreading in the Asia/Pacific region, thanks to the geographic
densities in markets like South Korea, Japan, Hong Kong, and Taiwan.
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