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Swisscom Cashing In on IPTV
Cash could be king in IPTV soon. Swisscom has made an all-cash offer to purchase Fastweb, the pioneer in IPTV and triple play services located in Italy. This merger could be the first international one of its kind, if it goes through.
Swisscom is after Fastweb’s Italian retail customer base and its expertise in IPTV. The merger would bring Swisscom back into the game as an international player after the company recently outsourced its international carrier network.
This is not the Swiss company’s first attempt to get back into the IPTV marker. It had been reported last year that Swisscom mad a bid to buy another industry leader, Telekom Austria. That deal did not go through.
IPTV has not been a strong point in Swisscom’s services. Its past experiences have been a disappointment to its customers and its partners (like Microsoft). By adding Fastweb, it could have the boost it needs to get over the hurdles and finally begin to turn a profit in the internet technology.
Many telcos that are currently offering IPTV are doing so at a loss. Most have spent billions of dollars on new networks and have a way to go to reap back the investment. Even companies, like Fastweb, that have benefited from existing networks are only just beginning to see the hopes of a profit.
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