Teleste at IBC 2011: OTT - Golden Opportunity to Become a Central Hub for All Content

Teleste at IBC 2011: OTT - Golden Opportunity to Become a Central Hub for All Content

AMSTERDAM, September 6, 2011/PRNewswire/ --

IBC -- At the IBC 2011 conference, Teleste, a leading technology
provider of broadband video and service platforms, will showcase solutions
and concepts that enable Cable operators to combine Over-The-Top delivery
(OTT) services to their existing DVB/IPTV networks. IBC 2011 takes place in
Amsterdam from the 9th to 13th of September 2011. Teleste welcomes you to
learn more and visit us at our stand 5.C36 in hall 5.

At IBC, we are focusing on:

- Teleste MyCast multi-screen service platform and the Teleste
Luminato distribution headend for cable TV and IPTV delivery. Teleste is
equipped to deliver a hybrid DVB/IPTV/OTT solution that will enable you
to retain and grow your customer base.

- We are also delighted to announce that our new AC9000
intelligent fibre optic node has been added to the CSI 2011 Product of
the Year Award's shortlist. The final results of the CSI 2011 Awards
will be announced at IBC 2011.

OTT - Best Thing Since Invention of Copper

The world of video delivery is changing fast: IPTV and DVB now have a
new bold competitor in Over-The-Top delivery (OTT) where TV and movies are
transmitted to television sets through the public internet. OTT is radically
changing the value chain - content owners now have a direct connection to
consumers.

This has raised questions on the future role of European cable TV
operators. The threat is that their role will be relegated to only offering
capacity while someone else gathers the revenue from interactive on-demand
services. The problem is that consumers can use any IP network to view TV
movies through OTT on their television sets and pay for the programming
directly to content owners. We at Teleste see that while OTT poses a threat
to Cable operators, it is also a huge opportunity for those operators who
are ready to embrace the change.

OTT is delivering what IPTV promised - high quality and interactive
television services through IP connections. The main difference between OTT
and IPTV is openness: OTT is open and flexible whereas IPTV is inherently a
closed system. IPTV also takes away the freedom of choice from consumers. It
seems like the customers have voted and rapidly taken up OTT services.

Today, there are close to 100 million household using OTT services. That
number is expected to almost triple to 285 million users by 2016 (TDG). It's
not all fun and games for OTT either. Bandwidth is and will in the future
become even more a bottleneck for services. 3D TV and upcoming ultra HDTV
require such high bandwidth that IP delivery networks will become a
limitation.

What strategy should European cable TV operators adopt? The future will
not be black and white. Fact is that linear TV broadcasts are best suited
for traditional DVB delivery. Fact is that OTT offers such ease-of-use,
interactivity, cost and variety that consumers will find hard to resist. Why
not have the best of both worlds?

Killer cocktail instead of killer app

For cable operators, there are two possible strategies to tackle this
change: close eyes and pretend that nothing has happened or see the change
as an opportunity and innovate to grab a larger share of the customer's
wallet. The question is not about inventing a killer application, but a
killer cocktail. And we believe that this killer cocktail consists of DVB
for traditional TV and OTT/IP delivery for other interactive services. Cable
is best for high bandwidth TV services and OTT/IP delivery is best for
interactive services. The winners will be those who are able to adjust and
offer both cable and OTT delivery. Operators not embracing this opportunity
are missing a potential revenue stream and alienating customers.

We feel that European cable TV operators are ideally positioned to
provide consumers both traditional broadcast and OTT services on a market
that is splintered along country, language, technology and historical lines
because they have two very valuable assets - bandwidth and consumer's trust.
Cable networks have the bandwidth to handle all existing and upcoming TV
services. Customers have for years trusted the operators for quality and
monthly billing relations. We believe that customers will always appreciate
the same things that made cable TV operators strong in the first place: good
quality HD video, a wide range of channels, central billing, and most
importantly, ease of use.

What European cable operators need to complement their offering with OTT
is a service platform that will enable them to easily integrate OTT services
with cable TV networks. The platforms and solutions are available today and
combining OTT to Cable TV offering is very much a reality. The winners will
be the operators who have the wisdom and foresight to combine the best from
both worlds.

About Teleste

Teleste is an international technology group founded in 1954, which is
specialised in broadband video and data communication systems and services.
The group is active in two business segments, Video and Broadband Solutions
and Network Services; in both fields, we are among the global leaders. Video
and Broadband Solutions business segment has the emphasis on product
solutions for broadband access networks, video service platforms and video
surveillance applications. Network Services segment deliver comprehensive
network service solutions including new construction, rebuilding, upgrading,
planning and maintenance services of cable networks. In 2010 the group's net
sales totalled EUR 167,8 million and the group employed 1230 persons at the
year-end. The company has approximately 30 offices world-wide and over 90%
of Teleste's net sales are generated outside Finland. The company is listed
on the NASDAQ OMX Helsinki Ltd. http://www.teleste.com.

Press materials can be downloaded from http://www.teleste.com/ibc

Source: Teleste

Mika Kavanti, Business Director, Video solutions, +358505871104, mika.kavanti@teleste.com

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