IPTV set to become main digital TV platform in Croatia

According to the Croatian Telecommunications Agency, new broadband users are growing at a faster rate than new cable TV subscribers. By Branislav Pekic

Since launching in October 2006, T-Com's MaxTV service has signed up 16,000 users and expanded its program offer by adding new channels and signing a distribution deal with Warner Bros.

Last month, T-Com introduced "Snimalica" service, permitting IPTV users to record content from 18 TV channels for viewing for up to 15 days afterward. "Snimalica" is offered in three packages of 10, 20 or 30 hours and a CPE upgrade is not necessary. In April, TCom started switching to the ADSL2+ platform, which will enable the introduction of new and innovative services such as HDTV. The operator is already testing HD content and video and has also started distribution of set-top boxes that are HD-ready and equipped with a HDMI interface.

T-Com utilizes EN5930 encoders from Tandberg Television for MPEG-4 standard-definition video, and is partnered with Siemens (Nokia Siemens Networks), which provided its SURPASS Home Entertainment system. SURPASS is a pre-integrated system that includes its Myrio middleware.

Other players
Rival Vodatel had 600 triple-play users at the end of 2006 and plans to increase that figure to 5000 by the end of the year. According to Board president, Sebastian Popovic, Vodatel will directly connect its users via fibre-to-the-home (FTTH) and fibre-to-the-office (FTTO) technologies.

Alternative fixed-line operators such as H1, Metronet and Optima are also looking at innovative services, to offer an alternative to T-HT (T-Com). In partnership with Samsung, H1 is introducing WiMAX throughout Croatia with an eye on offering triple-play with speeds of up to 24 Mbps. Metronet is developing IPTV solutions, triple or quad play, with the first services due to launch during 2007, says Board member, Sanjin Katinic. Optima plans to offer broadband internet access in every city in Croatia during 2007, but says it won't launch IPTV before 2010.

Croatian market
Cable TV distributors are responsible for only 0.44% of the total revenues of the telecom sector, compared to a 6.26% by ISPs. T-Com still dominates the local ISP market (73% according to Cullen International) and alternative fixed operators do not have the strength or the options to pose significant competition in the short term. Croatia currently has 300,000 broadband users; to grow to 500,000 by the end of 2008. A recent survey by the Croatian researcher GFK revealed that Croatians want a triple-play offering costing €14-20 a month, but are prepared to pay more if offered additional TV packages that would include movies and sport.