Last October, Alcatel-Lucent, along with Ericsson, Huawei and ZTE (Shenzhen: 000063.SZ) were revealed in the local Brazil media as possible candidates to be suppliers for Oi's IPTV network.
Set to be launched in the second half of this year, the service provider believes that it sees demand for the service in 20 cities in all regions of the country, in addition to Rio de Janeiro and Belo Horizonte.
Its thesis is not all that far-fetched. A recent Pyramid Research report indicates that IPTV services in Brazil will grow from 124 percent in 2011 to 153 percent in 2016 and IPTV services are expected to increase from 21,000 subscriptions in 2011 to 1.5 million in 2016.
Supporting the IPTV service will be a Fiber to the Home (FTTH) network that will also be used to provide broadband data access and wireline voice service.
Not content to be another me-too TV operator, Eduardo Aspesi, an Oi director, said IPTV will enable to generate new revenue via other value-added services such as video on demand. "With this new service, cable TV, Oi strengthens its convergent offer strategy," he said.
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