U.S. network operators are opening their networks to products sold at retail. This is happening now with both the wireless operators and the cable companies. The wireless companies are responding to pressure coming from the powerful open Internet ethic and from the influence of Google and other major Internet companies. - This pressure caused the U.S. FCC to include open access provisions in its auction of 700 MHz spectrum and led major U.S. wireless operators, AT&T, Verizon, and Sprint to initiate open access programs.
Cable Networks
The cable networks have followed a similar path as the Telcos. The cable companies started with closed networks that have become quite large over time. As it did with the Telcos, the U.S. FCC has been pushing the cable companies to open their networks so that consumers can buy TVs, DVRS, or other retail video devices, and connect them directly to the cable network without a set-top box provided by the cable company.
The cable companies introduced tru2way in January 2008 that provides the ability to connect retail devices to the cable network and access a full set of services including interactive applications using cable set-top boxes or retail products. The deployment of tru2way will create a strong opportunity for retail open access products connected to the U.S. cable networks.
Digital Living Networks
The Digital Living Network Alliance (DLNA) was formed to create an open standards based, multi vendor interoperable ecosystem for exchanging all types of media including photos, audio, and video files between a broad set of devices. DLNA can be used to support the storage of media that may be generated using a camcorder as well as playing this media on a TV or an audio player.
DLNA provides opportunities for the cable and Telco companies as well as for retail product companies to offer new architectures for delivering home entertainment. DLNA can be used to discover and stream content to TV’s and audio systems, DLNA devices handle the rendering of the content, so a DLNA network can eliminate the rendering function from the set-top box or its equivalent. DLNA may also provide a way to create a multivendor approach to functions such as whole home DVR where a single DVR can serve any of the TVs in a home.
DLNA will give the consumer electronics companies the ability to market products that take new roles, such as the ability to act as the home library of the full range of media and to play it on a variety of devices. Service providers can create new home network architectures by using the new DLNA retail devices in addition to or in place of their own products. These new architectures will create significant revenue opportunities for the consumer electronics companies along with significant opportunities for the cable companies to reduce their capital expenditures on set-boxes and other consumer devices.
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