Vodatel launches IPTV in Zagreb and T-HT, Optima and H1 will join race to take on Croatian cable

Croatia’s alternative telecom operator Vodatel expects to achieve up to 50,000 triple-play users within five years. Branislav Pekic reports on the company’s IPTV plans and those of operators across former Yugoslavia

Vodatel roll-out

By the end of May, alternative telecom operator Vodatel will connect the first users to its IPTV offer (initially in the capital Zagreb), after completing successful six month trials. Croatia-based company Ericsson Nikola Tesla has been awarded a EUR 40 million contract to set up the network infrastructure. Speaking to IPTV News Analyst, Vodatel’s president of the board, Sebastian Popovic, said they plan to sign up 30,000 to 50,000 triple play users over the next five years. He pointed out that they have opted for fibre-to-the-home (FTTH) technology, which is more expensive but offers higher quality video. “ADSL2+ is fast enough for triple-play, but it has its limits in regards to the quality of individual services such as TV. That is why we have opted for fibre, which costs EUR 1,000 per user compared to ADSL2+ that costs around EUR 500.”

Basic package

Subscribers will pay a one-off connection fee of HRK 450 (EUR 62), while the monthly ‘basic’ package will cost HRK 200 (EUR 27) and will include two telephone lines, Internet (2Mbps with 2Gb of traffic included) and 20 TV channels (plus Video on Demand). The basic package will include foreign TV channels such as CNN International, Eurosport, Nickelodeon, BBC World, Fashion TV and MTV. Additional packages will be formed according to the needs of individual users and will include faster Internet access and an additional 100 TV channels. Subscribers will also have the possibility of recording TV programmes that will be stored remotely on servers. Meanwhile, the former monopoly, T-HT, owned by Deutsche Telekom, will launch its own IPTV service this autumn via a 5Mbps broadband Internet connection. MaxTV’s programme offer will be made up of several packages including sports, movies, educational and adult channels. Like Vodatel, MaxTV will also provide a recording service, with all programming stored on T-HT’s servers, as the set-top box will not be equipped with a hard disk.

Although the rival operators Optima and H1 (Portus) were the first to announce plans to launch IPTV services last autumn, no firm details are yet available on their launch dates or programme offer. The main reason for the delay is that they are waiting for the unbundling of the local-loop and the signing of an agreement with T-HT. Both plan to use ADSL2+ technology, with tests already taking place in Slavonski Brod (Optima) and Split (H1).

Bosnia’s state-owned telcos ready to join Slovenian IPTV pioneers

The IPTV pioneer in former Yugoslavia (and in other parts of Central and Eastern Europe) is Slovenia's Siol TV (Slovenian Online TV), owned by Telekom Slovenije, the national telco. Slovenia's leading ISP launched the MPEG-2 based service over ADSL in September 2004, offering its TV subscribers 110 television channels and the use of Internet and email via a television screen for EUR 14 a month. Technology suppliers include SkyStream for headend equipment, Amino for set-tops (model 110 set-top boxes) and Minerva Networks for middleware. The ADSL service has an estimated 40,000 subscribers. Two of Bosnia's three state-owned telecom operators (a unique case in Europe) are planning to launch IPTV trials. BH Telecom was expected to have started IPTV trials at the beginning of 2006, but the project has been postponed until the second half of the year. Meanwhile, Aleksandar Resan, the deputy director of Telekom Srpske's Internet unit, Teol Republike Srpske, has announced that the operator is planning to introduce digital interactive IPTV and possibly VOD services. The launch date is yet to be announced. Reporting: Branislav Pekic