Picture quality is the top concern for prospective IPTV customers according to an independent research study conducted by InsightExpress on behalf of SupportSoft, Inc., a leading provider of Real-Time Service Management (RTSM ^TM) software. The 2005 study (1) polled European ADSL customers in 6 countries about their perceptions in receiving TV service from their telephone company. The number one concern expressed by respondents was "poor picture quality." A separate study (2) conducted in the United States reinforces the European finding, with poor picture quality identified by nearly 39% of American DSL subscribers surveyed as their top concern, should they receive IPTV services from their telephone company versus their local cable or satellite company.

Perspective provided by Informa, a leading U.K.-based telecommunications research firm, underlines the importance in resolving consumer quality concerns among digital service providers in deploying the "triple play" of IP-based video, voice and high speed data services. Informa's Adam Thomas observes in a recent report (3) that, "The priority for IPTV is to provide the basic service quality -- in terms of picture and sound -- that viewers have come to expect from other platforms. Only once this is established should IPTV operators try more sophisticated offerings. The driving force behind IPTV is the telecom sector's need to move away from 'plain old telephony services' (POTS) -- an area in which it is becoming progressively more difficult to turn a profit."

Bundling IPTV with other services as part of the triple play can contribute to unique installation and customer service problems that undermine profitability. This conclusion is outlined in a recent report by Informa analyst, Matt Ablott (4). He asserts that ". . . faults common to newly launched IPTV and VoIP service . . . could cause customer-support costs to eclipse any revenue gains and actually increase churn."

"The first 60 days are critical in establishing a positive consumer experience with IPTV. Service installation is especially complicated due to home wiring issues. As a consequence, ensuring the high picture quality to which TV viewers are accustomed can be difficult," said James Morehead, senior director of product management at SupportSoft. "SupportSoft Digital 360 solutions can help service providers 'see through walls' to help create a reliable IPTV connection, provide consistent picture quality, ensure a strong video signal, deliver fast service response, provide dependable network access, and avoid interference with other services in the home. With IPTV projected to grow tenfold to nearly 30 million subscribers by 2010, (5) service providers need service automation solutions that can address all of these issues to scale quickly and profitably to meet rising demand."

A new white paper from SupportSoft entitled, "IPTV: The Clear Picture," outlines the challenges specific to IPTV delivery, along with solutions for optimizing IPTV installation, utilization and ongoing customer service. For a copy of this new SupportSoft IPTV white paper, please visit: http://www.supportsoft.com/iptv.

(1) The survey was conducted by InsightExpress, an independent online market research firm, and completed in January 2005. The sample included 309 ADSL subscribers from France, Germany, Italy, Poland, Spain and the United Kingdom. The survey results are projectable across the population of ADSL subscribers within the countries surveyed and indicate a margin of error of 5.54% +/- at a 95% confidence level.

(2) The survey was conducted by InsightExpress, an independent online market research firm, and completed in January 2005. The sample included 200 DSL and cable subscribers from the United States. The survey results are projectable across the population of DSL subscribers in the U.S. and indicate a margin of error of +/-6.78% at a 95% confidence level.

(3) "IPTV: A Global Analysis" authored by Adam Thomas and published by Informa Telecoms & Media, August, 2005

(4) "Support costs could wipe out triple-play gains" authored by Matt Ablott and published by Informa Telecom Markets, 6 September 2005