Neil Gaydon, CEO, Pace Micro Technology

Via Satellite: How do you expect satellite pay-TV operators to counter the threat posed by telcos?

Gaydon: We will continue to integrate new technologies, for example, an IP return path, as quickly as we can as well as continue to drive costs down in the actual [set-top boxes] themselves. Cable hasn’t launched MPEG-4 HD yet, whereas satellite has. Cable is obviously much stronger in the U.S. when compared to Europe, but it boils down to content. As long as the satellite players remain in control of the primary content such as football, sports, movies, etc., they will continue to lead. I think that we, as an industry, can often get caught up in the technology, but we must not lose sight of the fact that the end user gets caught up in the content.

Via Satellite: How do you see the satellite pay-TV landscape developing over the next 12 months?

Gaydon: I see satellite operators continuing to grow their basic subscriber bases, tiering in new services such as HD, PVR and push VOD. I think they will continue to dominate in terms of content.

It is also worth pointing out that beyond technologies such as HD and PVR and an IP return path, there is multi-room, which for satellite operators will be key, especially as analog starts to switch off in major markets later this decade. We believe consumers will want the concept of the networked home where they can easily access all their content in all different parts of the house. As PVR proliferates and consumers get used to watching what they want, when they want, an integrated home solution would be a very powerful method for satellite operators to capture and retain market share.

Outside of the very early adopters, who could very well opt for a media center type product today to get this level of functionality, the majority of consumers will be too confused about what to buy in terms of the network. A strong operator, particularly a satellite operator, can get ahead of their competitors by putting in a networked home to satisfy this requirement.

Via Satellite: How do you expect satellite pay-TV operators to counter the threat posed by telcos?

Via Satellite: How do you see the satellite pay-TV landscape developing over the next 12 months?

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