[Satellite News 02-16-11] Croatia’s T-Hrvatski Telecom is using satellite capacity from the three transponders it leased from Eutelsat in January to extend the reach of its MAXtv pay-TV service. T-Hrvatski CEO Ivica Mudrinić told Satellite News that in markets like Croatia, where heavy infrastructure investments are rare, satellite enables telcos to quickly deploy services.
   “I think in the immediate future, this will not only be the case in Croatia but everywhere else,” Mudrinić said. “Inevitably, the capacity on DVB-T will continue to be limited. As we see further development of television, satellite delivery is one way of enabling a quick launch of many services into the market. As a telecom operator, we see satellite distribution as an extension of existing (ADSL and FTTX) technologies that we use for television distribution. We would like to maximize coverage of MAXtv service throughout Croatia by combining all three of these technologies.”
   According to Mudrini, T-Hrvatski likely will need more capacity over the next year as the service develops with HD channels and 3-D content. “HD is already part of offering on MAXtv IPTV service and soon it will become part of MAXtv service over satellite. It is not clear to what extent the take-up of 3-D TV will succeed, both in terms of channels as well as video-on-demand rental, but we will be there if it becomes relevant to the market.”
   While the deal is an acceptance of satellite’s practicality for pay-TV distribution, Mudrinić admits it’s a different scenario for broadband, and despite the launch of Eutelsat’s Ka-Sat satellite, a T-Hrvatski broadband deal in this area is unlikely. “We not only have a very well developed broadband infrastructure on copper and fiber, but in addition to that we have an excellent mobile network with full 3G service as well. We are looking to enhance this with LTE as soon as this technology matures. We have an operational test platform with LTE already, so at this point in time, because of our position in the market, we will use the existing platforms and the upgrades of these platforms as a primary means of broadband,” he said.
   At the end of the 2010 third quarter, T-Hrvatski had about 270,000 IPTV users, which is around 18 percent of the households in Croatia. Mudrinić said he believes the total pay-TV market can grow to 50 percent of households. “The strength of our brand gives us a chance to tap into parts of the market via satellite where our network does not reach — semi-urban and rural communities as well as the Croatian islands in the Adriatic region. So satellite delivery gives us the capability to cover the market fully and cover those areas which are not served by the IPTV platform.”
   Mudrinić said Croatia’s vibrant IPTV market is one of the top three in Europe and the fifth most valuable in the world. By moving to satellite, the company will be able to target a significant number of new households. “In the near future, upwards of 30 percent of households are the immediate targets for the satellite pay-TV service, and we will target primarily to our existing customers with basic phone or ADSL service.”
   The operator has also used MPEG-4 since the launch of the MAXtv service in 2006, and more recently, on satellite delivery channels. “In satellite, this resulted in the ability to offer more channels in HD and in IPTV to extend coverage due to lower bandwidth needed. It has proven to be a good choice,” Mudrinić said.