NEC said it will launch a "full-scale IPTV business," providing end-to-end video delivery systems for communication carriers around the world, and is predicting the unit will generate sales of around $500 million (50 billion yen) by 2010.
The IPTV strategy of Tokyo-based NEC comprises three main components:
- Adoption of IPTV middleware from Cascade Ltd., a subsidiary of Hong Kong service provider PCCW, to offer interactive video services including network-based digital video recording. Cascade's telco customers include PCCW and operators in Thailand, Serbia and Morocco.
- Delivering end-to-end IPTV solutions using NEC products, including set-top boxes, networking equipment, service-control systems and IPTV middleware.
- Release of the NC7500-VD video-on-demand server in April as the core system for new IPTV solutions. NEC is promising "carrier-grade reliability" and content-security functions.
NEC executive vice president Botaro Hirosaki, in announcing the company's IPTV plans, said, "NEC aims to expand services and meet carrier demands for smooth migration from current services and advanced service architecture incorporating [next-generation network] capabilities by providing next-generation IPTV solutions that couple our extensive technical achievements in broadcasting with our core competence in the area of IT/network integration."