Tru2way Tech Troubles Could Give Telcos an ITV Edge, Report Finds

By missing their self-imposed July deadline for making their networks tru2way-ready, U.S. cable operators may have lost some key support from consumer electronics manufacturers, which could further stall the cable sector's efforts to position tru2way as an effective platform for delivering interactive TV (ITV) services to compete with telco offerings, according to the latest report published by Light Reading's Cable Industry Insider (www.lightreading.com/cable), a subscription research service from TechWeb's Light Reading (www.lightreading.com).

Tru2Way Troubles: Is Cable Losing Out to Telcos on ITV? analyzes the impact of the missed deadline for tru2way deployment in terms of the technology obstacles that contributed to the delay and the business relationships with device makers. The report examines the requirements and challenges of implementing tru2way and profiles eight suppliers that provide tru2way headend and networking technology. It includes an assessment of a tru2way network's benefits, possible paths to overcoming technical challenges, and future market prospects for tru2way deployments.

For a list of companies covered in this report, please see: http://img.lightreading.com/cii/pdf/cii0809_companies.pdf.

"When major MSOs missed a self-imposed July deadline to meet certain tru2way benchmarks, it raised questions about how technically challenging it is to deploy the tru2way platform," notes Craig Leddy, research analyst with Light Reading's Cable Industry Insider and author of the report. "Cable operators and tru2way technology suppliers say that they are making progress and that many of the technical challenges have been overcome, but significant questions remain about performance and scaleability."

The future of tru2way retail devices is cloudy, Leddy says. "It's unclear whether consumer demand will drive significant sales of tru2way HDTV sets if the only advantage is to remove a cable set-top box," he explains. "Consumer electronics manufacturers have shown lukewarm enthusiasm for tru2way, and many are developing Internet-connected TVs. Without the support of consumer electronics makers, tru2way likely will become a solely cable enterprise that is focused on interactive applications delivered to next-generation cable set-top boxes, or new devices that are developed through deals that largely are initiated by cable operators."

Other key findings of Tru2Way Troubles: Is Cable Losing Out to Telcos on ITV? include the following:

  --  Technical challenges of tru2way deployment include software
      integration, applications management, and Docsis Set-top Gateway (DSG)
      signaling.
  --  MSOs say they are making progress in overcoming the challenges and
      continuing to prepare headends and roll out STBs, IPGs, and
      applications.
  --  Tru2way and DSG are emerging as a way to deliver Web video and IP
      services to TV, among other benefits.

  --  Cable operators remain firmly committed to deploying tru2way, despite
      the technical challenges ahead.

Tru2Way Troubles: Is Cable Losing Out to Telcos on ITV? is available as part of an annual subscription (six issues) to Light Reading's Cable Industry Insider, priced at $1,295. Individual reports are available for $900.

To subscribe, or for more information, please visit: www.lightreading.com/cable. For more information about other Light Reading Insider research services, please visit: www.lightreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

  Jeff Claudino
  Director of Sales
  Insider Research Services
  619-229-9940
  claudino@lightreading.com

  Press/analyst contact:

  Dennis Mendyk
  Managing Director
  Insider Research Services
  201-587-2154
  mendyk@heavyreading.com

  About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

  * 13.3 million business decision-makers: based on # of monthly connections

  About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com/.

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SOURCE: Light Reading's Cable Industry Insider

CONTACT: Jeff Claudino, Director of Sales, Insider Research Services,
+1-619-229-9940, claudino@lightreading.com; or press/analyst contact: Dennis
Mendyk, Managing Director, Insider Research Services, +1-201-587-2154,
mendyk@heavyreading.com

Web Site: http://www.lightreading.com/cable