Compounding the technical complexity of IPTV is the fact that unlike the first home broadband subscribers, early adopters of IPTV are less likely to be tech savvy. The attraction of IPTV as an entertainment alternative will likely bring those looking for more TV channels with convenient features, rather than technical broadband users. As a result, users’ dependency on customer service to solve problems means providers will most likely require more people to handle installation and repair issues. In fact, according to data gathered from both cable and telecommunications providers who are trialing IPTV services, approximately 10% of customers will require an in-person visit from a technician to solve problems.

Given the lack of self-service capabilities, providers can expect as much as 20% of revenue for IPTV services to be consumed by support costs. To reduce this overhead and accelerate time to profitability, providers must leverage new technology to ensure an easy-to-use, trouble-free experience for customers. This will not only tackle the financial and resource burden, which poses a significant impact on providers, but it will improve customer satisfaction.

After all, if customers are not satisfied with their service, they are likely to turn away – not only from IPTV – but also from all bundled services they receive from the provider in question. IPTV subscribers will not stand for multiple user interfaces or confusing and disparate setup and troubleshooting processes. The threat of customer turnover is a significant risk in this competitive market. Therefore, it is vital that providers ensure a simple experience from the outset for consumers for whom quality of service requirements are higher than ever before.

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