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Cable/Video

BellSouth Picks IPTV Finalists

BellSouth Corp. (NYSE: BLS) has chosen Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Lucent Technologies Inc. (NYSE: LU), and Ericsson AB (Nasdaq: ERICY) as finalists for its IPTV request for proposal (RFP), according to Jeffries & Co. analysts George Notter and Rajat Das, as well as other industry sources.

”We fully expect that Alcatel will be the ultimate winner,” the analysts write in a note distributed today, noting that they expect the deal to look similar to Alcatel’s FTTN win at SBC Communications Inc. (NYSE: SBC), where it won the right to serve in a network integrator role while supplying many of the key network elements.

Notter and pals note that Alcatel’s professional services organization, its IP-based DSLAM product, and additional product capabilities should be the differentiator in the deal. In addition, Alcatel’s standing relationship with BellSouth and the company’s incumbent DSLAM status will probably factor in to push them to the top.

The BellSouth RFP is targeted at providing integrated voice, data, and video over a next-generation broadband access infrastructure to its residential customers (see Analyst: Copper Is BellSouth's Gold). The company hopes to build a network capable of delivering broadcast TV, video-on-demand, digital video recording, VOIP, high-speed data/Internet access, online gaming, and audio services.

This IPTV buildout is a very big deal for BellSouth and the winning vendor, as the carrier has set a year-end 2009 goal to have 80 percent of its residential households covered by this new broadband access network.

Notter and Das note that the deal will be a big blow to BellSouth’s incumbent fiber to the curb (FTTC) supplier Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA), which they expect will get supplanted by the FTTN deal.

[Ed. note: Reltec Corp. had the original FTTC product at BellSouth. Marconi Corp. plc (Nasdaq: MRCIY; London: MONI) bought Reltec in 1999. Advanced Fibre Communications Inc. (AFC) bought Marconi's North American access business, which included Reltec's gear, last year. And Tellabs bought AFC this year. Clear?]

“Looking forward, we don’t believe that BellSouth and/or AFC will be able to migrate these older, TDM-based FTTC/DLC electronics into the future for delivery of video services within BellSouth’s new network architecture,” Notter writes. But while the game seems Alcatel's to lose, Lucent could run away with several pieces of the deal, including coarse WDM equipment, professional services/installation, and possibly some DSLAM business. BellSouth has put a fourth-quarter target of choosing the winning vendor for the RFP, and its upcoming Analyst day in New York on Dec. 6 might offer an opportunity for the carrier to formally announce its FTTN initiative. Initial deployment of the network is expected to start in late 2005.

— Chris Somerville, Senior Editor, NGS

databoy12 12/5/2012 | 1:01:48 AM
re: BellSouth Picks IPTV Finalists I think the entire planet knows who BellSouth is visiting this week. This is not late breaking news. However, it is also known that BellSouth also visited two other vendors for specific pieces of this network. The three companies this article mentions were obviously contenders for the DSLAM business, but they also proposed end to end solutions. BellSouth is different from SBC in that they probably will utilize copper to a greater degree. Wouldn't be surprising to see BellSouth announce other vendors making up parts of this network. None of the three mentioned in the article excel in every piece of the network, mainly just the DSLAM piece.
streamline 12/5/2012 | 1:01:47 AM
re: BellSouth Picks IPTV Finalists IPTV thru broadband is the wave of the future. The government of Japan just gave a TV company money for testing an IPTV television set for production in 09...not to mention that... every top broadband,cable and internet company in the US have been out striking up deals left and right for the last 4 months.


Dan







_____
http://www.internetprotocoltel...



streamline 12/5/2012 | 1:01:47 AM
re: BellSouth Picks IPTV Finalists IPTV thru broadband is the wave of the future. The government of Japan just gave a TV company money for testing an IPTV television set for production in 09...not to mention that... every top broadband,cable and internet company in the US have been out striking up deals left and right for the last 4 months.


Dan







_____
IPTV



jack flash 12/5/2012 | 1:01:43 AM
re: BellSouth Picks IPTV Finalists Well said re: the visits and that the mentioned companies are DSLAM vendors. There is much more to the IPTV netowrk than just the DSLAM. It is doubtful that any one company will be provide and entire end-to-end solution - the range of equipment is too great.

Also, Notter displays less than stellar intelligence when he dismisses FTTC without even knowing what can be and has been done to provide the full IPTV functionality that is required. I'll never buy any report with HIS name on it.
sysguru 12/5/2012 | 1:01:42 AM
re: BellSouth Picks IPTV Finalists It would be nice is US companies would keep the bulk of the work in the US... Bell South should select Lucent!
allidia 12/5/2012 | 1:01:41 AM
re: BellSouth Picks IPTV Finalists Wake up sport. Lucent's evil CEO is mandating LU ship every job possible overseas ASAP. She isn't even ashamed about it. She is borderline proud of putting Americans out of work.
particle_man 12/5/2012 | 1:01:34 AM
re: BellSouth Picks IPTV Finalists I had been holding out hope that broadband would be used by the forces of good.

What a waste of bandwidth. Is this what Gilder meant?
rjmcmahon 12/5/2012 | 1:01:24 AM
re: BellSouth Picks IPTV Finalists I had been holding out hope that broadband would be used by the forces of good.

Same here.

Here is a sign of hope that good may eventually prevail ;-) And exactly how many TV channels are the ILECs planning on offering?

http://thewhir.com/marketwatch...

VeriSign Releases Domain Name Data

December 1, 2004 -- (WEB HOST INDUSTRY REVIEW) -- Internet security company and domain registry operator VeriSign Inc. (verisign.com) announced on Wednesday that it has released the Domain Name Industry Brief for the third quarter of 2004, noting the registration of 5.1 million new domain names during the quarter, the highest quarterly growth in Internet history.

According to VeriSign, total domain name registrations worldwide reached its highest ever level of 66.3 million domain names. The company also reported strong growth in renewal rates, and the percentage of domain names associated with Web sites.
OldPOTS 12/5/2012 | 1:01:21 AM
re: BellSouth Picks IPTV Finalists
RE: "It is doubtful that any one company will be provide and entire end-to-end solution - the range of equipment is too great." ,jack flash.

While I agree that no company can deliver the entire end-to-end solution, several vendors, and their 'partners' can deliver a substantial (70-90%). The major exceptions are the set top boxes, video decoders and content servers. BTW this also applies to FTTP. Now content is the long pole in delivering an acceptable IPTV service to subscribers. All this is why someone will pay big bucks for good integrators.

OldPOTS
[email protected] 12/5/2012 | 1:00:45 AM
re: BellSouth Picks IPTV Finalists "It would be nice is US companies would keep the bulk of the work in the US... Bell South should select Lucent!"

Lucent might make an excellent solutions integrator - they are clearly interested in the space judging from their reps at the USTA Telecom 2004 conference - but if you apply the "buy American" line, you will have a hard time getting the full range of options end-to-end.

For example:

Most set-tops are from Far East and Europe

Some excellent headend options are made in Europe

Only 3 of the 7 viable IPTV middleware offerings are from US companies (the others are developed in Canada, Europe, Israel)

So, OK, there are a bunch of good US-made DSLAMS - but when it comes to IPTV, the industry is global.

If the goal is to have one company "prime" and use as much in-house capability as possible, you can't ignore Alcatel (Yes, even though they are French [so what, by the way]). They have the network, they have IPTV middleware, They have video servers (formerly Thirdspace OVS) and content management (formerly Thirdspace software), they have alliances with Thomson (horrors, another French company!) for encoders and set-tops...

Sorry if that insults certain American sensibilities.

- Steve
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