TelcoTV 2008: Price still trumps innovation

Heavy Reading is due to announce new research results Wednesday afternoon at Light Reading-affiliated TelcoTV 2008, so it's no surprise Light Reading is offering an early glimpse at what the HR survey says. The agency's survey of about 200 consumers shows that low prices are still the best way for a telco TV service provider to beat the competition.

This information arrives as service providers and their vendor partners are falling all over themselves trying to figure out innovative TV applications that have been presumed to have the real power of competitive differentiation. However, Light Reading notes that the curvey was conducted very recently during a time when macro-economic pains have been especially acute. You have to wonder if different results might have occurred earlier this year, or perhaps some next year--unless we are all burning our TVs by then to heat our homes.

Telcos probably do not want to get into a bigger price war with cable TV operators, but they may need to read the writing on the wall and keep expectations for adoption of some new applications low while the pricing concerns play out.

For more:
- Light Reading reports

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