I&B ministry today informed the telecom regulatory authority of India (TRAI) that it has accepted its recommendations on IPTV. This means that the broadcasters will now be able to transmit channels through IPTV networks provided by telecom service providers.

For set-top boxes, the Bureau of Indian Standards will look into specifications for IPTV to help cable operators while designing their IPTV networks, said a TRAI official.

This will give a boost to the two PSUs – Bharat Sanchar Nigam Ltd (BSNL) and the Mahanagar Telephone Nigam Ltd (MTNL) who own close to 90 per cent of total fixed telephone lines in the country.

IPTV permits a telecoms service provider to offer TV through telephone lines. A special modem is required at customer premises for transmitting TV signal. It uses Internet Protocol (IP) and hence it is called IPTV.

Aksh, Exicom and IOL are some of the leading IPTV service providers that have joined hands with BSNL and MTNL for IPTV services. They are working on franchise basis with the two PSUs to offer IPTV services.

Under this scheme, the BSNL gets 10% of the total revenue earned by the franchise on its IPTV operations.

Now with the government clearing dust over the regulatory issue, the two PSUs will be bullish on IPTV.

Telecom operators with unified access service licences and cellular mobile telephony service licences to provide triple-play services, as well as Internet service providers with a net worth of more than Rs 100 crore with permission from the licensor to provide IPTV can provide the IPTV, according to the regulations specified by the telecom regulator.

Bharti Airtel started IPTV trials a year ago in 1,000 households in Gurgaon and is slated to launch its services in the first half of next fiscal. RComm also plans to launch the service in ten cities around the same time. State-owned BSNL recently launched multi-play services for broadband customers in Pune. VSNL also is expected to launch IPTV services soon.

India has one of the lowest average revenue per user (ARPU) in the world – both in mobile and fixed line services. Fixed line service providers are looking at IPTV services as a saviour for them. They believe that IPTV services will be able to increase their revenues.

However, the cable industry views IPTV services by telecom operators as an encroachment into their area of operations and a threat to their business models. The advantage of IPTV over cable TV is that it is a two-way medium and is much more interactive in nature.

Since telecom service providers with a UASL license are permitted to provide triple-play services, there were questions raised time and again whether these operators needed further regulatory clearances.