Over the last few years, video over broadband in its various forms has been associated with the hype around convergence. Content digitization, new Broadband technologies and the promise of ubiquitous broadband access triggered high expectations in the media and telecommunications industries. In spite of numerous lab and field trials (in Europe almost every telecom operator tested video over broadband) and impressive media industry consolidations, there have been no commercial launches of video over broadband services until very recently.
The residential broadband market has changed beyond recognition since the introduction of ADSL Internet access in the late 1990s. With the accelerating commoditization of broadband through increased DSL penetration rates in the majority of European countries, telecom operators are struggling to reinvent themselves, to create market differentiation through innovation, and to find new ways of extracting value from their DSL infrastructure. In order to maintain profitability, many operators are moving from offering Internet access over DSL to delivering value-added services over DSL.