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SNL Kagan Study Forecasts Slow Growth for Telco TV

Monterey, CA (Vocus) June 14, 2007 -- Telco TV Outlook, a new report by SNL Kagan, forecasts modest take rates for telco video services through 2011.

However, while the outlook for telco video services may seem less than promising, the five-year home penetration rate is expected to be in line with the initial results posted by digital cable and satellite services. Forecasts show take rates for fiber-to-the-home will exceed those using fiber-to-the-node architectures coupled with DSL technology. Verizon has adopted a fiber-to-the-home strategy, while AT&T has gone with fiber-to-the-node.

"There are two significant gating factors to the telcos' entrance into the space: speed to market and the cost of upgrading infrastructure to deliver video services," said Ian Olgeirson, senior analyst for SNL Kagan. "This will restrain them from grabbing much larger chunks of the market in the foreseeable future. It's a difficult task that will require long-term commitment and investor patience." An additional factor is compiling programming packages, with the telcos facing competitive disadvantages on both cost and scope.

SNL Kagan's Telco TV Outlook report explores the market conditions motivating the phone companies to enter the video space, forecasts the availability and subscriber counts of telco video offerings and examines the economics of upgrading or rebuilding traditional telephone infrastructure. This analysis delineates programming costs and outlines the competitive responses from the incumbent providers. The report also provides in-depth profiles of the telcos driving the widespread deployments of video services and includes an enhanced map component that features visuals of telco markets and cable MSO competition.

The SNL Kagan Telco TV Outlook is available exclusively as part of the SNL Kagan Information Service. For more information on the report and other media & communications datasets within the SNL Kagan Information Service, call 866.296.3743 or email: SNLKaganSales @ snl.com.

About SNL Kagan
SNL Kagan is the ultimate resource for complete financial intelligence on the broad and dynamic media & communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database that is available online and updated around the clock. SNL Kagan combines the 38-year heritage of Kagan Research with parent company SNL Financial's 20 years of experience in providing essential guidance to Wall Street and to America's top corporations. For more information, visit www.SNL.com or www.Kagan.com.

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