It could take years for the telecom business model to pay off for network operators and content providers.

IPTV can stop average revenue per user decline, but it might take years to overcome the technology and content hurdles, according to panellists at the NetEvents conference in Malta last week.

Gartner analyst Ian Keene told delegates that IPTV could help telecoms firms and other market entrants improve or stabilise their ARPU decline, bring in new subscribers and reduce churn.

Firms should see IPTV as a platform and not a service, he said, as the technology can be used to deliver pay-TV, video on demand, time-shifted video and even for storing home video.

But it is a tricky investment for firms, because of the cost of improving networks and also the uncertain customer base.

“Because of the significant investment, it’s hard to put a business case together,” said Keene. “How much will people be willing to pay?”

Another hurdle for companies is that IPTV does not look set to pay off quickly, but could take as long as four or five years before it affects the market, he said.

This is partly because of the need to upgrade networks and technology. Current technology works for the first wave of users, but expanding take-up will require new innovations and standards to keep them inter-operable.