There's no doubt that the telecom market in China is hot and that it's likely to be a major driver in the vendor segment for many years, after all, it's the world's largest telecom market by population and, soon, will likely be the world's largest by revenue. But a story from TelecomAsia spells trouble for telcos looking to make a move in the IPTV sector there.

Three-network convergence trials--bringing cable, telecom and Internet-together--have been a hot-button for a decade in China, and the country has decreed full convergence by 2015. It appears the powers that be are planning to give cablecos the inside edge, allowing them to offer trial voice and data services in Beijing, Shanghai, Harbin, Shenzhen, Dalian, Wuhan, Hangzhou, Nanjing, Qingdao, Xiamen, Mianyang and the Changsha-Zhuzhou district in Hunan.

Telcos will not, in return, be allowed to offer IPTV service trials. It's not the first note that telcos wouldn't necessarily be the heavy movers in the pay-TV space in China. In February, for example, the Chinese government shut down the service of IPTV operator Guangxi Telecom, a unit of China Telecom, for not having a broadcast license.

The service launched only recently and had been growing rapidly, according to media reports. At least four licenses from three different government groups are necessary to operate an IPTV offering in China.

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Chilean service operator Gtd Manquehue is deploying an integrated platform to secure broadcast and video-on-demand channels on its DVB-C/IPTV based hybrid network. The Verimatrix Video Content Authority System for DVB hybrid solution leverages the I-Systems digital TV platform, which includes middleware and VOD servers from GoBackTV and hybrid set-top boxes from Xavi.

GTD Manquehue, a subsidiary of the Gtd Group, has been rolling out advanced broadband services on its FTTH network, the first of its kind deployed in Chile. The digital TV service offers high definition channels on its DVB-C network and incorporates an IP return channel for key management, VOD and interactivity.

Although IPTV growth has slowed somewhat in other parts of the world, the Latin American pay-TV market is being seen as a growth market for both service providers in the region and for technology vendors. Operators increasingly are taking advantage of IP-based networks in combination with DVB standards-based broadcasting.

Gtd is implementing a cap-and-grow strategy by adding VCAS via DVB Simulcrypt for the new advanced services, using hybrid STBs, while capping the installed base of older STBs supported by a legacy CA system.

"We expect Latin America to be a significant growth area for us as we are seeing many progressive service providers taking advantage of advanced, cost-effective technology," said Steve Oetegenn, chief sales and marketing officer at Verimatrix.

For more:
- see this release

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