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of integration on the device , but it also allows Sky to offer users a complete system including content , security and enhanced quality . Others are deploying simpler streaming devices . This , however , shifts the centre of gravity -- in terms of user experience management of content and devices -- to an intelligent core network . UPTAKE . As to how well such devices have fared since launch , Futuresource ’ s Forrest says that early reads from the firms in-field consumer survey , Living With Digital , suggests encouraging uptake for Sky Glass . “ What devices are we talking about ,” asks Netgem ’ s Eisenberg . “ VM Stream is only available as a companion to Virgin V6 and is the only example of a lightweight device , apart from Netgem ’ s TV box which is the closest : it performs very well in the UK Altnets and TalkTalk with an attachment rate above 25 per cent ,” he reveals . “ I ’ m not aware of numbers published by either ,” admits Omdia ’ s Simmons , “ but Sky has stated it ’ s had ‘ huge demand ’ for Glass .”
“ It is still too early to say ,” adds SoftAtHome ’ s Souhami . “ Operators who invest are doing so in several directions : bringing more advanced devices , embracing a full OTT model by switching to all IP ( with significant network and OTT device costs , partnerships with third-party service providers beyond video distribution , including telemedicine , video conferencing , gaming and IoT . Therefore , the CPE model switch is just one side of the big move that is happening ,” he concludes . ALTNETS . As altnets come to market and competition increases , what role does CPE have in helping market players differentiate from one another ? “ Altnets offering video services are no different from any other type of pay-TV operator ,” suggests Amino ’ s McKee . “ They take on responsibility for the quality of services they offer to their customers and a managed set-top box enables them to monitor and manage the quality of service within the home . By relying only on retail devices introduced by the consumer , a key component of the video delivery chain is out of their control , which will likely make their NPS ( net promoter score ) suffer ,” he warns .
“ A modern streamer is a powerful computer device with high-performance CPU , graphics engine , voice processing , Bluetooth connectivity ( think IoT ), and the latest chips even include AI / ML processing ,” notes CommScope ’ s Cardy . “ They become a platform for delivering application and TV add-value services , such as online gaming , home education , smart-home , home care services , etcetera . Some operators , for example Comcast with its Flex service , are providing streamers with the broadband service . Customers can subscribe to the popular streaming services , but also receive additional content . With their UI on the TV , it becomes a marketing platform
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“ WiFi is an aspect of service management that a successful operator must deal with .” - Jonny McKee , Amino
with customers invited to purchase additional
content and service upgrades via service .”
“ Arguably , the CPE differentiation is no
longer in the home gateway , which have
become small unobtrusive ‘ fit and forget ’
boxes adjacent to the telephone socket ,” says
Forrest . “ Instead CPE differentiation is now
happening front and central on the television ,
either via an accompanying operator-provided
STB or Smart TV ( in the case of Sky Glass ),
with the network operator brand value carried
into the home via online services provided
by those operators . This is a challenge for
altnets , since most do not possess similar
service propositions . In this instance , altnet
differentiation must instead be carried by
the perceived quality of home gateways ,
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routing and mesh networking equipment
that consumers install within their home
environment ,” he advises .
OPTIONS . “ The question is not so much what
role does the CPE play , but what ‘ TV service ’
is it part of ,” contends Eisenberg . “ In Netgem
TV ’ s proposition , the most important thing is
the amount of quality content offered at a price
of less than £ 10 / m . To this we add the choice
in paid options such as Amazon Prime Video ,
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RakutenTV , BT Sport , etcetera . “ The box is almost secondary , as a reassuring point with its recommended retail price of £ 150 and with the idea that all advanced features like Alexa , 4K / HDR , Bluetooth are provided as standard .”
“ The TV industry ’ s move to apps and platforms like Android TV means that the underlying content and software for services is becoming homogenised ,” says Simmons . “ CPE can play an important role in differentiating services in an environment like this . This can be through very fundamental things like optimising WiFi connectivity , to more compelling use cases like adding far field microphone arrays for hands-free voice control , speakers to turn the box into a soundbar , or even cameras for watch-parties or video calls .”
“ Where more than one altnet is active in a given region , they will often compete on broadband speed and price , potentially resulting in a race to the bottom ,” suggests Hollett . “ As such , a CPE product that allows them to offer TV without the need to manage the service themselves is a key differentiator . It ’ s important to select a platform which has a local focus , offering the necessary BVoD apps in their territory , as well as the big international streaming providers to appeal to a wide ranging audience who will appreciate a mix of paid and free services .”
“ CPE can help operators to differentiate thanks to advanced services , such as voice control - that ’ s not accessible on all TV sets - aggregation of home services beyond traditional content , deep links between broadband and video services ,” adds SoftAtHome ’ s Bensaid .
“ Intelligent CPE offers incumbent NSPs the chance to differentiate themselves from alternative network providers - or altnets - by offering managed services that are tailored to the needs of the different market segments they seek to address ,” notes Toutah . “ It creates an opportunity to offer value-added services on top of the broadband access to enhance the connected home experience . This includes managing the performance of WiFi in the home . Altnets can compete on network speed and throughput . CPE , however , lays the foundation for providing high-quality end-toend services that integrate access , in-home wireless and content management .” VOICE . How important is voice control as a driver for CPE renewal and what trends are you seeing in terms of using voice-control rather than traditional remotes ? “ This is not an either-or scenario ,” says McKee . “ Voice control has undoubtedly become important to consumers , yet it is complementary to the remote control . For most services , the remote control continues to be the primary means of interaction . Voice control has some blind spots and we ’ ve all had experiences where it ’ s clunky
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