Posts tagged ‘CTAM’

Home monitoring could offer high-growth revenue for cable

Home monitoring and security could represent an important new high-growth revenue stream for European cable operators.

Market studies in Switzerland showed that interactive home monitoring systems would appeal to between 21-28% of homes over the next four to five years, according to Markus Doetsch, executive vice-president and head of smart living, Swisscom, speaking on a panel session at the CTAM Europe EuroSummit in Vienna last Friday.

Doetsch said people were increasingly organising their lives around their smartphones and it was only a small step to extend this to using these devices to monitor and control their homes. He said telcos and cable operators were well positioned to deliver these services. Swisscom’s Smart Living product provides subscribers with three interfaces to interact with the home – via smartphone, the web and a dedicated touchscreen device interface. Swisscom provides a dedicated wireless home device as the key device for interacting with the home.

Home monitoring and security is already big business in the US, where there is a greater emphasis on the home security element. In Europe, home energy monitoring is seen as providing greater potential. In addition to energy monitoring, Swisscom does provide a home security service but not as a default option.

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European cable operators optimistic about broadband growth

European cable operators expect CAGR of 5% on average this year, with broadband driving most of the growth, according a survey of European cable operators carried out by Solon Management Consulting.

Average margin from cable’s services is expected to grow to 48% by 2014, while operating cash flow margin is expected to rise to 29%, Matthias Hamel, principal, head of technology and innovation, Solon Management Consulting, told CTAM Europe EuroSummit attendees this morning.

Cable operators believe premium pay TV will continue to grow, according to the survey, while broadband penetration is expected to grow to 70% of the cable base by 2014. About 69% of survey respondents selected multiscreen delivery as the innovation that would be their major area of focus, ahead of the launch of next-generation set-top boxes and HD services. Some 45% of cable subscribers took only one service in 2011, but bundling products could reduce churn by a factor of five, according to Solon’s survey.

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