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Via Satellite: With numerous DTH players making the move to HD, and wanting to broaden how their content is digested, how does this impact a player like Tandberg TV?Cooney: It is certainly a key driver for our business. There is increasing pressure for a better value proposition to the consumer, and HDTV is a key differentiator. I believe that operators such as DirecTV, EchoStar or BSkyB will continue to aggressively expand the number of HD channels in their service offering and drive to improve picture quality as they compete against the other television providers.
Via Satellite: How serious is the competitive threat to satellite posed by IPTV and cable provider?Cooney: I think all of the operators —satellite, cable, IPTV — have unique potential offerings that they can bring to their subscribers. I think the differentiation really boils down to time to market and deployment of those advanced services. Whether that is more HD channels, DVR and on-demand services, or interactive television applications, the operators that are growing their subscriber bases aggressively are those who are successfully deploying new compelling consumer applications and offering a differentiated service. It is not about just offering basic SD television today. Look at the growth rates of IPTV. AT&T’s has announced their IPTV offering now has over 100,000 subscribers and Verizon’s Fios TV has announced over 700,000 subscribers. You can likely predict that all of those IPTV subscribers were receiving television services from another operator, likely cable or satellite, prior to switching to the IPTV offering. These customers likely made the move based on a more appealing set of services, features and functions relative to their original service provider.
If we go back to satellite, it is imperative that they continue to push the envelope. That is why you see someone like DirecTV, for example, launching an incredible number of HD channels. That is something that would be challenging for others to compete with and a compelling differentiator for them. I think you will continue to see operators push the envelope in search of creative ways to differentiate their service and create a better value proposition for their subscribers.
Via Satellite: What role do you see Tandberg playing on the satellite services landscape globally?Cooney: I believe you will see Tandberg Television and Ericsson significantly increasing our market share and our presence in the satellite segment worldwide. We will do that based on unique differentiated technology offerings. Fundamentally, that is our core differentiation as a best in class technology provider. Our strategy before and after the Ericsson deal is reliant on being the first-to-market, best-in-class technology provider. We have certainly demonstrated our ability to consistently to do that over the last few years, and you should expect that we will continue that track record going forward and that we will use those differentiated technologies to expand our market share.
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