Spain becomes an IPTV leader

In 2005, Telefónica de España launched Imagenio, a hybrid IPTV-DTT (Digital Terrestrial Television) service, in Madrid and Barcelona. Now available to 4.4 million households in 140 locations, Imagenio has over 200,000 TV subscribers. Telefónica has been deploying ADSL2+ Digital Subscriber Line (DSL) throughout its network to support the interactive IPTV service, which is being offered individually or as part of a triple-play package that includes broadband Internet access and VoIP service. Subscribers receive 48 TV and 15 audio channels, interactive services and VOD (including live Spanish football) with PVR (DVR) features for EUR38 per month, plus a two month free lease on the decoder. The hybrid DTT/IPTV boxes are produced by ADB. Telefónica’s head of infrastructure and information systems, Vicente San Miguel, told IPTV News Analyst that Imagenio added 206,000 users during the 2004-2005 business year. San Miguel points out that Telefónica’s popular Dúos and Tríos packages helped maintain the same 55 per cent share it had in 2004. Imagenio coverage will be expanded to 50pc (7.4 million homes) in 2008, when it forecasts one million subscribers.

VOD and HDTV

An estimated 34pc of subscribers took VOD services, averaging three movies a month, while 21pc ordered live football (averaging two matches per month). Trials of VDSL technology will start later this year, by broadcasting movies in HDTV, with commercial launch following sometime in 2007. The operator is forecasting that more than 60pc of households will have a broadband connection of up to 50Mbps by 2010. Looking at the content offering, San Miguel is confident that Imagenio has little to fear from competitors, as it offers a bigger channel line-up, premium content, football and more than 300 on-demand titles.

In mid-March, Spanish telecom company Jazztel launched its IPTV service Jazztelia nationwide, after completing successful trials in Zaragoza and Torrejón de Ardoz (Madrid). With speeds of up to 29Mbps, the tripleplay service uses ADSL2+ technology and is currently offered at the promotional price of EUR1 a month (EUR3 from June 1). A ‘Basic’ 30-channel package, including CNN, Bloomberg, TV5 Monde, Calle 13, AXN, Fox, Canal Hollywood, Viajar y Cocina, Discovery Channel, National Geographic Channel, Jetix and Nickelodeon, is available for EUR8.95 a month, to which will soon be added 22 DTT channels. Content deals also have been signed with Sogecable, Universal, Turner, Fox, Multicanal, Bloomberg, Sony, Viacom and others. Jazztelia TV will expand its portfolio during 2006 by offering additional TV channel packs, VOD (‘Videoclub’) and other interactive services. In January, Jazztel added 24,310 new ADSL customers, bringing the grand total to 244,875, with the goal of reaching 475,000 by the end of the year. The operator currently has 432 switchboards (412 with ADSL2+ technology) and 11.6 million lines (10.7 million with ADSL2+ technology). That is 54 per cent of the total lines in Spain.

Systems include Nagravision content protection, Kasenna video servers, Harmonic encoders and ADB set-top boxes. Jazztel plans to complete a EUR200-250 million capital funding round by mid-2006, according to executive director, Ramon Quintero. The company uses Spanish system integrators Indra and Telindus.

Grupalia IPTV Alternative operator Grupalia Internet launched IPTV services through its Superbanda.net (SB3) brand. A triple-play package with 20Mbps Internet access, 23 TV channels and free national phone calling costs EUR44.95 per month plus EUR6.95 to lease the set-top box. Channels include MGM, CinemaTK, Showtime Extreme, Canal 18, Somos, Natura, Fox News, Eurosport, TVE1, La2, Antena 3, Cuatro, Tele 5, Telemadrid Sat, Andalucía TV and Localia. Superbanda.net is known to be negotiating with movie producers and distributors for a new VOD service, although no VOD or premium content is yet offered. Superbanda aims for 1.5 million subscribers after its first phase of deployment. Others are expected to introduce IPTV in Spain in the future. Ya.com has already chosen Alcatel as triple-play services partner and will offer triple-play over IP by the middle of this year.

Orca provides middleware for Jazztel

To penetrate Spain’s residential broadband market, Jazztel has licensed Orca Interactive’s RiGHTv middleware as part of a multi-million Euro deal. At the end of 2005, Jazztel introduced live television over IP using MPEG-4 and will add other triple-play services during 2006. Orca's solution supports a hybrid environment that enables Jazztel to offer subscribers IPTV content side-by-side with DVB-T terrestrial channels. Additionally, with Orca's Subscriber User Interface Software Development Kit (SUI SDK), Jazztel was able to launch its solution using the third-party SUI development of design company Fresh. Orca provided an STB plug-in for the ADB set-top and enabled Fresh to develop the SUI, proving the flexibility and effectiveness of Orca's SUI SDK. “We are excited to work on this significant project with Indra, a leading system integrator,” comments Orca’s CEO, Haggai Barel.