IBM inks IPTV development deal

By Colleen Taylor, Contributing Editor -- Electronic News, 5/4/2007

IBM has inked a new collaborative agreement with Switzerland-based secure IP/Ethernet next-generation access solutions provider Allied Telesis to develop Internet protocol television (IPTV) systems targeting telecommunications companies and network service providers worldwide.

Under the agreement, IBM will provide business consulting, technical consulting, implementation services based on Cisco technology and flexible financing services from IBM global financing. IBM said it will create a new integrated system providing operators and carriers with end-to-end platforms that offer broadband TV services, multi-channel high-definition (HD) television, video-rich content on demand, online gaming and an assortment of other interactive services. Meanwhile, Allied Telesis will be IBM's preferred access network supplier for next-generation broadband access, and IBM will be Allied Telesis' preferred systems integration partner for IPTV sales activities in Europe, the Middle East and Africa.

"This is a win-win situation for both organizations," Maik Lankau, senior VP of worldwide sales and president of EMEA at Allied Telesis, said in a statement. "Network evolution to IP/Ethernet-based packet networks and next-generation broadband present unprecedented business opportunities for IBM and Allied Telesis in the telecommunications industry."

As analysts continue to forecast major growth for the premium video market, Big Blue is certainly not the only major industry player investing in emerging media platforms like IPTV. Motorola announced last month that it has shipped its one millionth IP set-top box, and in March, Apple began shipping its own video box product, Apple TV.

Indeed, premium video services are set to continue shaking up the existing entertainment media landscape in a major way, with IPTV leading the pack. IPTV is currently the fastest-expanding segment of the pay-TV market, with revenue expected to increase to $23.5 billion in 2010, rising at compound annual growth rate (CAGR) of 103 percent from $681 million in 2005, market research firm iSuppli Corp. has predicted.