Telkom Media, the new subsidiary created by the fixed-line telephone giant, broke its long silence on Friday, inviting members of the media to a demonstration and press conference that displayed the benefits of its planned Internet Protocol TV (IPTV).
Telkom Media, 66%-owned by Telkom SA, will operate as an independent subsidiary of the telco. The rest of the shareholding is split between numerous parties - including 15% held by Videovision Home Entertainment.
"We will buy wholesale bandwidth from Telkom in exactly the same way as Internet Solutions and MWeb and all the other [tier one] ISPs," comments Rikus Matthyser, head of strategy and operations at Telkom Media.
Telkom Media will require a broadcast licence from the regulator, the Independent Communications Authority of SA, to offer television services over its network. Some feel Telkom's R7.5 billion investment in IPTV displays confidence this licence will be awarded.
On this point, Matthyser treads carefully: "I am confident - when you look at the work we have put in, and the completeness of our bid - that we should definitely be considered for the awarding of a [broadcast] licence."
Bouquets
He adds that any launch of services would take nine to 12 months from the date of the awarding of the licence - which is not expected to happen before August.
Telkom Media will use the licence to provide a variety of services, including a limited satellite TV offering expected to cost about R100 per month, for a selected bouquet. Other satellite options will be more expensive.
In terms of IPTV, the standard bouquet should be in the region of R320 per month. It will include a dedicated news channel, headed up by South African TV newscaster Jimi Matthews.
"I'm excited by the opportunities that new media presents," Matthews told the media. "Besides a local 24-hour news channel, we will have a lot of international content.
"People don't want to wait for news at scheduled times - they want it at a convenient time, at an affordable price," he added.
New services
Adrian Smith, heading up Telkom Media's technical team, lists the benefits of IPTV. Besides the usual fast-forward, rewind and record functionality similar to MultiChoice's PVR, IPTV will allow video content (like wedding movies, for instance) to be uploaded to the network.
As it is carried over the Internet Protocol, the integration with instant messaging and e-commerce will be seamless, added Smith. Multiple camera angles of the same sports scene can be viewed simultaneously, and luxury car adverts will allow the viewer to control the camera, going "inside" the car, virtually speaking.
He uses the example of being able to click on the pair of sunglasses that a certain actor may be wearing, and ordering a similar pair from online stockists, via the billing system Telkom Media plans to introduce.
Besides the IPTV offering, Telkom will have video-on-demand movies available for instant rental - at R10 or R20, depending on the movie.
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