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Fixed video telephony: market overview

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Abstract

The market for fixed residential video telephony is beginning to take shape as suppliers are finally beginning to meet the demand for higher quality, more affordable devices.

Technological advancements, strong competition from Far Eastern manufacturers and the emergence of broadband have all played an important role in the amelioration of previous supply-side issues. Subsequently, a growing number of operators (for example, Telecom Italia, SingTel and France Telecom), manufacturers (such as Motorola) and VoIP providers (for example, Skype and Sony) are entering the market. Whilst success to date appears mixed, the success of Telecom Italias analogue video telephony service (which had sold 765,000 videophones in the 15 months to September 2005) seems promising for the market overall.

Table of Contents

Key messages

  • Video telephony is shaping up
  • A show case for the fixed line
  • Defence against FMS
  • Careful pricing and packaging is key

A long-term effort

The video telephony market today

  • Key players
  • Marketing strategies
  • Success to date

Critical success factors

  • Price
  • Quality
  • Critical mass requires interoperability
  • Substitutes

The future of video telephony services

Is demand there? More than just another fixed service Many supply-side barriers to overcome Messages to fixed operators

Case studies

PSTN-based video telephony

  • Vialta
  • Telecom Italia
  • Telefonica
  • Amstrad

Broadband video telephony

  • Motorola
  • 8x8
  • France Telecom
  • SingTel

PC-based video telephony

  • Sony
  • Skype
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