Operators in Portugal are just beginning to offer IPTV services while service providers in Spain step up the pace. Sonaecom already has more channels than its local cable competitor. By Branislav Pekic

After inking a channel distribution deal with Portugal Telecom (PT) in April, Sonaecom began the first commercial tests of SmarTV with 1,000 clients. Those signing up for the service until July 31 are being offered a free subscription to Sport TV. SmarTV is already offering 87 TV channels, compared to the 74 provided by cable operator TV Cabo, and plans to add interactive services and VOD. Speaking to IPTV News Analyst, the director for broadband services at Sonaecom, Pedro Carlos, said they recently upgraded broadband access speeds to 20 Mbps and are equipping all unbundled telephone switchboards with ADSL2+ technology. He claims Sonaecom signed up 41% of new broadband clients in Q1 2006, compared to 40% by the PT Group and 19% by other operators. Sonaecom currently has a 7% share of the broadband market and, according to Carlos, is aiming for 20% in three years time.

TMax extension

Rival AR Telecom has extended its TMax wireless broadband network to 140,000 households and is investing a total of EUR800 million in the project. The tv.net.tel service offers a ‘triple access platform’ to broadband internet, DTT and voice services, currently only in parts of Lisbon and Porto. Other operators planning to launch IPTV services by the end of 2006 include Oni and Redvo Telecom. The director of Redvo, Celso Meira, told IPTV News Analyst they aim to sign up 17,000 clients in the first year, investing EUR1.1 million in the process. Questioned on pricing, Mr. Meira guaranteed “they will be lower than those charged by TV Cabo”.

Increased competition

In neighbouring Spain, France Telecom has officially launched Wanadoo TV, to compete directly with Telefonica’s Imagenio and Jazztel’s Jazztelia TV. ADSL Wanadoo clients in Madrid, Valencia and Saragossa with the high-speed internet access and phone call package (costing EUR36 a month) now receive some 40 TV channels at no additional cost. Additional thematic channels have an extra cost of EUR11 per month. Overall, 1.6 million households are now eligible to receive WanadooTV, with coverage due to extend to 7 million by year-end. The new IPTV service uses MPEG-4 (H.264/AVC) compression.

Meanwhile, Imagenio has added 17 new channels (including 12 DTT channels), bringing its total number of channels to 66 and has also signed output deals with Warner and Paramount. Subscribers will soon be able to choose from three types of decoders: a basic box that will be free, the second will be leased at EUR6.50 a month (with the possibility of reception on other TV sets at home), while the third will be sold for EUR272, with an integrated hard disk. The Telefonica-owned operator currently has an estimated 250,000 subscribers and is aiming for one million by 2008.

T-Online entry

The vibrant Spanish IPTV market will soon see the entry of yet another player, after T-Online, the owner of local internet provider Ya.com, confirmed plans to launch a triple-play offer. A Ya.com spokesperson confirmed to IPTV News Analyst that the launch is planned for the second half of 2006.