Cisco is becoming an increasingly important player on the video services landscape. The company signalled its intentions earlier this year when it unveiled its Videoscape services, a TV platform for service providers that aims to combine digital TV and online content with social media and communications applications.

Enrique Rodriguez, senior vice president and general manager of Cisco’s Service Provider Video Technology Group, is responsible for more than $2 billion in revenue and leading Cisco’s strategic direction in the area of next-generation video services. He discusses the launch of Videoscape and how Cisco can work with the satellite sector. 

VIA SATELLITE: When do you see the first deployment of Videoscape?

Rodriguez: I expect some early deployments in the next 12 months, but I think Videoscape will really start showing up in 2012. I think we could see some showcase partnership deals signed this year. I think this year will be a good indicator. You will see some key partnership deals with a view to an actual time of deployment. 

VIA SATELLITE: What does Videoscape bring to the market that has not been available before?

Rodriguez: With Videoscape, what we are doing is taking television delivery and turning it into an application in the broad IP network so a service provider can focus all of their capital in improving their core network. A typical service provider today is likely to have both a wireline and wireless infrastructure. The reality is you want to keep investing your capital infrastructure dollars to make that infrastructure better and better so you can start to think about the applications on top of that.

The philosophy based around this is that TV and video are perhaps the most demanding applications out there, but, nevertheless, they are just applications, and they are IP. We need to move things forward so service providers do not the feel the need to build parallel networks as they are delivering video services. That is the big philosophy behind Videoscape. You can make an analogy in terms of what happened with voice services. Over time, if you wanted to improve your voice network, you wanted to buy voice network equipment. A service provider thinks of voice as an application on an IP network. We see a future in video just like that. 

VIA SATELLITE: How does Cisco view the over-the-top (OTT) TV market?

Rodriguez: It is still a very nascent aspect of the industry and we are still seeing it evolve. I think what we are seeing from the last two years is that OTT is currently moving in two interesting divergent paths. On the one hand, you have media companies such as broadcasters that are using the Internet and broadband to bring to their consumer a direct product. It is not a package with a service provider offering a range of services. They are looking to go beyond the PC and onto the iPad or smartphones. The other aspect of this is the new cellular and broadband technologies that allow the service providers to extend their service to consumers beyond the traditional footprint. If a service provider is in x million homes, using OTT technologies, they can then provide services to those customers even when those customers are not at their home. OTT used to mean riding on top of the service provider, but actually we are seeing a lot more interest from the service provider themselves riding on top of other service providers.

VIA SATELLITE: Do you see OTT services as an opportunity or threat for the satellite sector?

Rodriguez: During the last few years, I have seen that the satellite providers have a really difficult path in terms of what they must do in order to embrace IP. Obviously, they didn’t have a core network to rely on. What I have realized is that it is now just the opposite, so OTT, and more specifically the use of OTT technology, gives satellite operators an opportunity to bridge the gap in terms of the consumer experience compared to various IP providers. BSkyB has actually been providing some OTT type services. They have been pretty innovative. They signed a partnership deal with Microsoft Xbox. Dish is already doing something similar in the United States. DirecTV also provides OTT services regarding American football, which is really important to them, so, they provide this content on a mobile device and an iPad. These type of OTT technologies can really enhance a service that providers offering.

VIA SATELLITE: Are you seeking business with satellite operators?

Rodriguez: We have started discussions with some operators. I think service providers see OTT as a great way to get their brand and content beyond their traditional network. You often read about whether satellite would have a disadvantage when these two-way networks come into force. I think OTT is a great way for a satellite operator to negate what was seen as a competitive disadvantage before.

VIA SATELLITE: What can satellite players do to make the most of OTT?

Rodriguez: If I were a satellite provider, the first thing I would want to do is free myself from the confines of the home. I want to allow my subscriber to enjoy my service on different platforms. The second thing is that satellite operators have an economic advantage when delivering services via a broadband network. Satellite is really efficient. I would focus on combining that with all the benefits of OTT to provide a complete solution.

VIA SATELLITE: Will your initial deals be more cable and telco related?

Rodriguez: At the moment, we see equal interest between cable and telecoms operators. The satellite operators have been a little slower, at least with Cisco, in terms of engaging in dialogue, however, in the last few months, I have seen a lot more interest coming from that sector. Broadband and satellite delivery can, in some ways, make a perfect combination. I am optimistic that satellite will take advantage of the Videoscape platform.

VIA SATELLITE: What are the main revenue-generating opportunities associated with OTT services?

Rodriguez: There is no question that OTT broadcasting is going to allow some level of developing business models to be established. It will allow a service provider to provide a compelling experience to an end user through OTT delivery. I expect that to happen, however, I do not expect it to become a dominant method of TB broadcasting. It adds another twist to the business model. I am really convinced that the biggest use for OTT technology will come from the service providers.

VIA SATELLITE: What are the commercial opportunities for Cisco?

Rodriguez: First, we always look for partnerships with a very small number of operators that will help establish and move the technology forward. We hope to set up some field trials and get this technology really in front of customers. That will be a big indicator for us, so during the next two years, we are going to look to set-up those partnerships. Beyond that, in years three to five, we want to make sure that the technology is commercially deployed.