“The reason you can only get 20 HD channels over your typical cable system right now is because those systems bundle everything together, and they don’t have enough bandwidth to deliver anything else, “Scharfberg explains. “IPTV actually helps with the amount of bandwidth you need entering into each unit.” As of press time, observers say AT&T is the only major carrier currently offering such a single-serve IPTV solution. Verizon’s FiOS TV service does use IPTV protocols for its on-demand offerings, but its other channels are bundled in cable-like fashion.
HARD WIRING? Experts say to-the-building bandwidth requirements range from about 13 Mb per second to 19 Mb per second. With AT&T and Verizon laying their own fiber pipes to properties or at least community nodes, those speeds are achievable today. And, as with Milestone’s rollout, the last several hundred feet of IPTV can be delivered via existing CAT-3 or CAT-5 wiring.
“In theory, yes, they can run it over CAT-3, but it depends on the condition of that existing wiring,” says Henry Pye, director of resident services and technology at JPI Cos., an Irving, Texas-based multifamily owner, manager, and developer that started working with Verizon in 2003 and has since deployed the firm’s FiOS TV offerings to thousands of units nationally.
“You can go to sites that are only three years old and have wonderful cabling, but over time, people have borrowed pairs or stolen pairs, for whatever reason,” Pye says. “At that point, you have to go back in and recondition the wires to make sure you know where everything is.” flat means operators could, indeed, end up having to invest in updating their own physical plants to ensure residents can receive IPTV service.
From a business standpoint, a recent FCC ruling banning exclusive agreements between apartment owners and cable TV providers may have come just at the time when IPTV is starting to get a toehold in the United States.
As a matter of policy in new construction, Pye says JPI always lays at least two types of cabling into its properties, so that its residents have a choice between at least two “triple-play” providers, such as telecom and cable firms that are all offering Internet, phone, and TV packages on their respective networks. Typically, the infrastructure investment costs JPI between $1,200 and $1,350 per unit, but Pye says it’s a price worth paying—giving residents options is paramount in the amenities game.
“We are pretty much devoted to having at least two providers of every service whenever possible,” Pye says. “Certainly, we never want to limit the number of services available to our residents. flat’s just where the industry is going.”
Joe Bousquin is a freelance writer in Auburn, Calif.
ACTION ITEMS
TUNE IN, TURN ON
- Prepare for demand. IPTV is coming to America. Already popular in Europe and Asia, analysts estimate IPTV subscribers in the United States to top 7 million by 2011.
- Market to a younger demographic. Tech-savvy Gen Y renters enjoy IP-enabled options, and IPTV can help communities keep up in the amenities game.
- Invest in infrastructure. While IPTV can be delivered over existing phone lines, you’ll need to make sure that wiring is in good shape. Fiber-to-the-node rollouts should provide enough bandwidth outside your properties.
