IPTV M&As to create closed networks: Cisco, Motorola buy in

Making note of the continuing series of acquisitions in the IP video market, ABI Research warns the industry that the business model of end-to-end IPTV offerings may create closed networks. This model is based on the operators' assumed preference for single-vendor approach. Meanwhile, the adoption of standards such as Advanced TCA, OpenCable and MOCA indicates that all players are aware of the benefits of standardization, putting the onus on standards bodies to ensure convergence of vendor technologies into standard platforms.

ABI also points out that the resulting smaller number of vendors will not only deploy their video solutions in the telco networks but also deliver home networks and CPEs for the tech-unsavvy customers. The firm anticipates Hewlett-Packard, IBM, Nortel and Lucent will acquire or partner with IPTV specialists and finds Orca Interactive, Kasenna, Bitband, Optibase, 2Wire and Entone as attractive targets for acquisition.

For more on this:
- read ABI Research's press release

PLUS: Cisco completed its $6.9 billion acquisition of Scientific-Atlanta, a provider of set-top boxes, end-to-end video distribution networks and video systems integration. Cisco will now be offering an IP NGN architecture with a variety of integrated media services capabilities in addition to the current digital video/IPTV functionality.The Scientific-Atlanta team, led by CEO Jim McDonald, has become part of the Routing and Service Provider Technology Group under Cisco Senior VP Mike Volpi. Release | Article

ALSO: Motorola has completed its acquisition of the Swedish IPTV set-top box developer Kreatel Communications. Motorola claims that Kreatel's Linux-based solution that can be used with middleware solutions and will complement its end-to-end digital video solutions. Kreatel's team will be integrated into the Motorola Connected Home Solutions business and will continue to operate from Linköping, Sweden. Release

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