Telco Execs: We Don't Believe In IPTV

AT&T and other telcos make big promises about the future of IPTV delivering video over IP networks. But in private, these same execs pooh-pooh the technology. In fact, a recent Accenture survey found that not a single telco exec surveyed believes the technology will generate revenue in the next year, and only half say it will bring in money in the next three years. Fortune reports that an Accenture survey found that a mere 4% of telecom, broadcasting and media executives believe IPTV will bring in significant revenue in the coming year.

Not a single one of the telco execs thought it would boost revenue in the next year, and only half think think it will bring in significant revenue in the next three years.

Greg Douglass, Accenture global managing director of Accenture's media and entertainment practice, explained to Fortune, "We started to see a gap between what telecom executives were saying and doing and what their equipment and software providers were saying, and what was being hyped in the press."

In other words, when these guys talk to the press, they cross their fingers.

So why are the telcos touting IPTV, when they don't really believe in it?It's not that they don't believe in it, it's just that they don't believe it will generate big cash in the near term, and maybe even the long term.

Instead, IPTV will be part of the telco triple play strategy -- offer a phone, Internet, and TV bundle. So IPTV by itself won't bring in money, but it will help the telcos keep existing customers, and possibly gain new ones.

Still, the telcos have a tough road ahead. Cable companies are infringing on their turf by offering VoIP, and surveys find that customers are happier with cable voice services than telco services.

In addition, telcos are facing multi-billion dollar network buildouts so that they can offer TV services, while cable companies, to a great extent, already have the infrastructure for providing voice.

So the next time you hear a telco exec touting IPTV, don't believe what he has to say --- because he doesn't believe it, either.0