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Thursday, November 15, 2007

Cable operators? business aimed at value-added services

During IP Communications Seminar, organized by Grupo Convergencia, BVC and STC operators presented their experiences in the development of Triple Play offers.

Cable operators' challenge is to become telecom operators”, assured Hernán Apesteguía, director of Sistema Televisivo Comunitario (STC) from Pergamino (Argentina), the only Triple Play (3P) operator of the area, and he added that “the entity connecting value-added producers and customers, will not only be the technological model but it will also be able to provide more competitive prices”. Within the framework of the IP Communications Seminar organized by Grupo Convergencia, Apesteguía stated that IP service marketing allows them to capture different kind of customers such as the young segment, which adds through the Internet services.

 

Together with BBT, broadband and telephony provider, STC offers Triple Play through its networks HFC (hybrid fiber-coaxial) for US$ 42.7 monthly. The service includes 300 Kb connectivity, 1,500 free minutes for local telephony and free calls within the same group, besides the television programming. Although it is only one company providing the three services, so far, the customer receives separated bills.

 

Moreover, Bahía Visión Color (BVC) from Bahía Blanca (Argentina) also provides 3P through the integration of BVC, BVNet and Crossfone, with an end rate of US$ 46.2 including 640 Kb, 500 free local telephony minutes and free calls within subscribers of the same group, plus the audiovisual service.

 

Maria Pizzolo, director of BVC and VP of BVNet, stated that the service covers 2,300 blocks and the local network is used to provide Internet and cable, while the LatiNode network from Crossfone is used for telephony. Finally, Pizzolo said that the company will soon begin the network migration from HSF to HTTF to provide 50 MB of capacity, which will enable the provision of IPTV and HDTV.

 

Flavio Passa, regional account manager of Sofrecom, mentioned the case of IPTV in Orange from France; stating that the service appeared as a convergent proposal to spread broadband, and that upon the fall of the traditional voice services, IPTV helps strengthening ARPU and customers’ trust. In this sense, Passa stated to Convergencialatina, that the service penetration in France, is one to seven, therefore every seven broadband users, one subscribes IPTV service.

 

He explained that the company deployed different strategies from the beginning of IPTV in 2003: the first one was focused on equipping set top boxes, and home gateway to reach the residential user, then they offer facilities to customize the programming chart with “TV a la carte” as from a basic pack, VoD, PVR, Live TV, Time Shifting, among others. At first, Orange focused its business on content distribution and it slowly moved backwards in the value chain links to start paying attention to bundling, edition and finally, co-production of contents.

 

“Orange TV” offers 230 channels added to the premium offer, it has 975 thousand customers and they expect more than one million by the end of the year. The service is offered for € 35 with 8 Mbps of transfer and unlimited calls with the operator, added to the basic television service and VoD.

 

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