Besides VoIP, there is another four-letter piece of alphabet soup involving the Internet that builders need to become familiar with so they can capitalize as it gains momentum—IPTV, or Internet Protocol Television. Although this video arm of the triple play may be something more builders are hearing about, they might not be entirely sure just what IPTV means.

So what exactly is IPTV? It's the process of delivering video signals over the Internet or other types of data networks. If the video signal is analog, the video and audio signals associated with the video are first converted to digital before routing equipment adds packet routing information to the signals so they can be sent via the Internet.

Instead of receiving video or TV signals broadcast over radio waves, for example, a homeowner's television is connected directly to a broadband router and receives the digitized video and audio signals over the Internet. An IPTV system requires the following key components:

• A bridging device or adapter that converts video and audio signals from the computer into a form that enables the homeowner to watch such signals on his TV; these devices are available through an IPTV provider.
• A broadband access provider, which transmits high-speed data to end-users; these include local exchange telephone companies, Internet access providers, cable TV companies, infrastructure providers and wireless service providers.
• An IPTV provider, which connects a subscriber's home computer to the Internet and provides software to operate the IPTV system. The computer, including the software, keeps track of which customers are active viewing IPTV and which features and services are authorized. When a customer requests a specific TV channel to view, the IPTV provider's equipment sends messages to a media gateway via the Internet, allowing the channel to be connected.
• Content providers, which create programming.

IPTV can be delivered over a FTTH or fiber-to-the-curb (FTTC) network, or enhanced traditional copper wire. IPTV programming allows a subscriber to obtain video programming whenever the subscriber decides to view it—that sounds similar to video on demand (VOD), but rather, think of it more like the way anyone can access information on the Internet at any time.

The Federal Communications Commission (FCC) defines the traditional cable television system as a facility, consisting of a set of closed transmission paths and associated signaling generation, reception and control equipment that is designed to provide "cable service," which includes video programming to multiple subscribers with a community, with certain exceptions.

Cable service means a one-way transmission to subscribers, which is a key characteristic. An IPTV system, on the other hand, employs a two-way interactive network—a subscriber uses a set-top box to request specific individual video signals from the service provider and therefore controls the video signal he wishes to access. Because of their use of digital bandwidth, IPTV systems also offer not only a greater choice of programming content than cable, but likely better quality video signals.

With Media Center Edition PCs becoming popular as central controllers for multiroom access, IPTV fits in with such a solution that builders can pitch to homeowners. IPTV allows not only the subscriber's TV set to be connected to the Internet, but all of the computers in his home to be connected so it essentially acts as a media server for access to digital photos, videos or music files.

For builders, one thing that makes IPTV significant is its allowance for integration of a variety of telecom services. It can be packaged or bundled with normal broadband Internet, VoIP, either a FTTH or FTTC, or copper wire system enhanced by digital subscriber line equipment. This is appealing to consumers who prefer to deal with a single service provider.

Michael Glaser heads the telecommunications department of law firm Shughart Thomson & Kilroy, P.C.