Due to the silo structure of the service offering, a cross channel offering, e.g. a Video on Demand service in the IPTV or mobile TV area is not possible with the current infrastructure. A consolidated structure would consist of a set of real time software encoders which would deliver the TV streams ­simultaneously along with mobile streams. The service will be controlled by a common SDP with an integrated IPTV middleware and an integrated digital rights management.

This new structure would significantly reduce his infrastructure which directly results in reduction in staff, reduced power consumption, and maintenance costs as shown in the graphic below.  

The major benefit is that this operator is now capable of developing a set of convergent services which can be brought into the market in a very short time frame. He can now provide his Video on Demand services now for all three channels, the IPTV, Web and the mobile reusing the same infrastructure. Based on his digital media platform consolidation this operator is now in a very favourable position compared to his competition due to his capability to react rapidly to ever changing consumer needs.    

The current economic climate presents a unique challenge to a majority of the telecom operators. Those that successfully innovate, both in development of new desirable service offerings as well as control of costs stand to emerge from the downturn as stronger, more focussed organizations. Digital media services are a key area of interest in this respect. Although this may ­require some levels of investment, the potential returns both in the short and medium turn necessitate that consolidation in this space demand a closer look. It could very well play a role in determining who will prevail or who will perish.