VoIP is not alone when it comes to the use of proprietary session management software. Apparently IP TV segment is even worse. An estimated 23% of live IP TV subscribers are being served by proprietary IP TV middleware. Service providers that find it hard to trust off-the-shelf middleware include FastWeb, TeliaSonera, Verizon (a hybrid offer, not entirely IP TV), Neuf, and Telefonica.
The total number of IP TV subscribers worldwide is estimated at 7.5 million (as of June 2007). In comparison, out of the estimated 55.4 million consumer VoIP lines worldwide, about 18% were found to be hosted by proprietary call management software. As a younger sibling to VoIP within the triple play family, IP TV is treading the beaten track.
Those who have been successful selling the middleware solution off-the-shelf are typically confined to one of two large accounts. Thomson leads the pack because France Telecom is the leader among the service providers. France Telecom accounts for a big majority of Thomson middleware deployment. Cascade follows Thomson at number two, and as the readers might be aware most of Cascade’s middleware sales are confined to PCCW. Espial's biggest middleware customer is NTT.
UTStarcom’s main deployments are shared by three main providers: China Telecom, China Netcom, and Softbank BB. Alcatel-Lucent’s biggest deployment and the main customer is Chunghwa Telecom. Nokia Siemens counts on Belgacom as the main customer. IP TV equipment has all the ingredients of a market in its infancy.
Another important trend that emerges in this report is that Microsoft is now turning its trials into deployments and is all set to give tough competition to the existing IP TV middleware vendors. Microsoft IP TV middleware supports an estimated 370 thousand live IP TV subscribers (4.9% of the total worldwide).