[opendtv] News: Time Warner tests IPTV in San Diego

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 14 Jul 2005 09:35:03 -0400

Time Warner Cable enables customers to watch TV via Internet connection

July 14, 2005 12:00am
Source: San Diego Union-Tribune, The (KRT)

  Jul. 13--In what is billed as a nationwide first for a cable 
company, Time Warner Cable is letting its customers in Mira Mesa and 
Tierrasanta watch television over their home computer's high-speed 
Internet connection.

  The pilot project ushers in what some experts believe is the future 
of TV -- television over the Internet.

  Ultimately, they predict, Internet protocol television, or IPTV, 
could deliver more channels, offer custom features, such as local 
weather or sports scores, and allow viewer interaction.

  For now, Broadband TV, as Time Warner calls its service, offers the 
same 75 channels that are available with its standard Advantage 
service.

  "It's basically like having another outlet for watching TV," said 
Judy Walsh, president of Time Warner's San Diego division. "It's TV 
on your PC. It's that simple."

  The six-month pilot project was rolled out Friday to 9,000 of Time 
Warner's customers in the test area who subscribe to both cable 
television and its Road Runner high-speed Internet service.

  To watch television on a computer connected to Time Warner's Road 
Runner Internet service, customers download and install a media 
player made for Time Warner by RealPlayer onto their computers. Then, 
they log on to a special Web site (www.twcbbtv.com) using their cable 
TV account numbers.

  It takes up to seven seconds to connect to a channel. The show that 
is playing on that channel then streams on the computer screen. 
Viewers change channels with the click of a mouse.

  One challenge for Time Warner was to make sure that the shows air 
smoothly over the Internet, just as they do on television, as opposed 
to the jumpy picture that is typical of streaming video.

  Bob Jones, vice president of engineering for Time Warner's San Diego 
division, said the key to high-quality video is keeping the data on 
the company's private network. While the video travels along the same 
pipeline as e-mail and Web sites, it never leaves Time Warner's lines.

  Walsh said consumers have been asking for such a service.

  "People have indicated they want to be able to watch TV on all of 
the devices in their homes," she said. "This is in response to what 
people want."

  San Diego was chosen as the test market for Broadband TV because "it 
has a terrific population of savvy PC users," said Peter Stern, 
executive vice president of product management for Time Warner. "This 
is the type of service that tests well with more experienced, heavier 
users of the Internet."

  The service is technically and economically feasible because of 
advancements in technology.

  Internet connections have gotten faster. Road Runner in San Diego, 
for instance, offers download speeds of up to five megabits per 
second, in which a customer can, on average, download a typical song 
file in about five seconds.

  In addition, video can now be compressed into smaller files without 
losing quality, allowing more shows to be fed down the same pipeline.

  After the service has been tested for six months, Time Warner said 
it will decide whether to expand it to other customers in San Diego 
County or even elsewhere in the nation.

  The delivery of television shows over the Internet using IPTV 
technology is a sign of the long-talked-about convergence of the 
television set and the computer.

  "IPTV will really not appear to be IPTV to the consumer because all 
they will subscribe to is a television service," said Herve Utheza, a 
digital media industry analyst with the Diffusion Group research 
firm. "They'll end up choosing between cable, satellite and telecom 
operators, and maybe, one day, online services to watch television 
and movies."

  Telephone companies are especially eager to deliver television over 
the Internet to compete with cable TV providers, satellite TV 
operators and traditional broadcasters.

  SBC Communications, the largest telephone company in San Diego 
County, has embarked on a $4 billion project to offer IPTV video 
service over its copper wire and fiber-optic lines beginning next 
year.

  With SBC, the TV service will available over television sets 
equipped with special set-top boxes. No pricing has been set.

  SBC plans to offer more than just television shows with its service. 
The service will allow customers to use their televisions to view 
photos stored on their computers, spokesman Larry Solomon said. It 
will provide weather information for their cities and scores of their 
favorite sports teams. And it will allow customers to record a 
program from their cell phones or their computers.

  On-demand video will also be made available at an additional cost.

  One of the keys to the IPTV technology is that instead of sending 
all the channels to a customer all the time, as is the case with 
traditional cable, only the channel selected by the customer is 
transmitted, saving on bandwidth.

  SBC and others say that means an IPTV service can deliver far more 
channels to a customer.

  "Because it's an IP (Internet protocol) network, the possibilities 
are limitless," Solomon said. "Television viewing has not progressed 
very much in the last 10 years. We're going to revolutionize the 
video experience in the home."

  The competition between cable and telephone companies is fierce, 
especially now that cable companies are offering phone service. IPTV 
is the next battleground for the two industries.

  "The telephone companies have been crowing about their plans with 
regard to IPTV," said Stern, the Time Warner executive vice 
president. "Our experience in delivering multichannel television has 
actually enabled us to deliver this service before any of the phone 
companies."

  SBC's Solomon said his company intends to compete as aggressively in 
television service as the cable companies have in the phone business.

  "We're going to turn the tables around and become a very aggressive 
competitor in the video business," Solomon said. "And the winner is 
going to be the consumer."

  Worldwide, about 1 million households watch TV delivered via 
Internet technology, according to a report by the Diffusion Group.

  By 2010, the report predicts that 14 million households will 
subscribe to a telephone company's IPTV service, 6.5 million will 
receive IPTV from a cable or Internet service, and 17 million 
households will subscribe to it via a satellite company.

  Smaller telephone companies in the United States have already deployed IPTV.

  Elsewhere, television over the Internet is taking hold in France, 
Italy, Great Britain, Spain, Hong Kong and Korea, analyst Utheza said.

  In San Diego, Cox Communications, the county's largest cable 
provider, this year launched a subscription service for $14.95 a 
month that allows customers to watch live Major League Baseball games 
over its high-speed Internet connections.

  Later this year, Cox plans to launch a new feature that will marry 
the Internet with TV by allowing customers in San Diego County to 
surf the Web and check their e-mail on the television. It will be 
free to digital cable subscribers.

<<San Diego Union-Tribune, The (KRT) -- 07/14/05>>

<< Copyright ©2005 The San Diego Union-Tribune >>
 
 
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