MTNL ropes in IOL Broadband, Aksh Optifibre for IPTV

MUMBAI: Infrastructure suppliers are fighting for what could be a gold mine as Internet Protocol television (IPTV) comes into India with over a billion potential viewers.

Mumbai-based IOL Broadband Ltd and Aksh Optifibre have signed a content delivery network affiliation contract with state-owned Mahanagar Telephone Nigam Ltd (MTNL), which will allow the PSU’s customers access to IPTV content and video on demand (VOD).

MTNL is expected to be the first to go live with IPTV and VOD, with a launch likely in Mumbai and Delhi by January 2007. The PSU, which plans to deploy over 1 million modems in the next few months, will then offer movies and music on demand on its network.

Peeyush Agrawal, general manager-broadband, MTNL, told DNA Money, “We are at the final stages of our IPTV plans in which IOL Broadband will be supplying the set top box and part of the content delivery network, whereas Aksh Optifibre will be providing broadband content services to our customers. Moreover, with the availability of high quality content from IOL Broadband, the pace of deployment will surely be accelerated.”

The agreement will allow both the companies to access over two lakh broadband subscribers of MTNL.

IOL broadband has also advanced plans to deploy broadband interactive services in SMEs and large corporate offices.

The company, promoted by Ashish Deora, was caught in the crossfire between the Ambani brothers over ownership issues. At that time, Deora was presented with stock options by Mukesh Ambani, which was withdrawn later.

An Aksh Optifibre official confirmed the move. However, Deora could not be reached for comments.

IPTV and VOD technologies are gaining traction all over the world and could well replace the traditional viewing media soon. According to sources, several telecom operators, including Reliance, BSNL and Tata Teleservices, have plans to offer IPTV and are grappling with last mile and technology issues at this stage.