Telepresence grows in Asia-Pacific: Ovum

UK: Telepresence was a global vendor (Cisco/Tandberg/Polycom), global service provider (AT&T/BT/Verizon Business) story. That changed recently when Hong Kong-based CPCNet launched a managed high-definition (HD) video conferencing solution, VC2, and China’s Huawei Technologies launched its own line of telepresence equipment.

Separately, SingTel has been giving visibility to its Managed HD Video Conferencing Service, which launched at the end of 2008 and which now includes telepresence.

Global managed telepresence offers from AT&T and BT have had limited reach into the Asia-Pacific region as the operators build up network operations centre capacity to support inter-carrier and inter-company video networking. Now regional enterprise users will have potentially even more choice than counterparts in Europe and the Americas, with the emergence of these regional players.

CPCNet’s VC2 solution is provided through a range of CPE devices and allows laptop access to the conference room. CPCNet provides the managed network connectivity to maximise the efficient use of the network for video traffic at the same time as integrating different bandwidths to provide HD quality video to all participants in the conference.

The new solution provides a web portal for end users to manage video conferences and a 24×7 helpdesk to ensure quality of service can be given at all times.

CPCNet has focused its managed services model around video conferencing being accessible to all users, something that Ovum believed was essential for the development of video conferencing when telepresence made its entrance to the market in 2007. Telepresence has definitely spurred on the video conferencing market and CPCNet’s managed network connectivity is essential for the quality of video conferences using different devices.

Huawei also quietly announced its latest telepresence offering. It already offers a selection of end points for HD video conferencing, but this is the first move in the telepresence market.

The solution, ViewPoint Telepresence 3006, is based on open standards so that it can be interoperable over different networks and can provide HD and standard-definition conferencing to users with existing video conferencing solutions. The solution uses a wireless control to manage the call setup, which it says is simpler and more convenient to use than a telephone call.

Interoperability is key for telepresence, and Huawei has made the right choice to make sure that its solution is interoperable.

The potential for HD video conferencing in China is huge. It is an extremely useful tool to help manufacturers demonstrate their products without the need for travel. So far, telepresence deployments in China have been made by the major players in the HD video conferencing market: Tandberg, Polycom and Cisco.

The release of Huawei’s Telepresence solution will help the market grow within China. Huawei is renowned for its low-cost solutions so we may expect pricing to become more competitive for video conferencing units in the future if the Huawei solution can compete with its western competitors.

Western operators catch up in Asia-Pacific

It is not only the local players that are making moves in China. In March, AT&T announced that it would also extend its telepresence services into China during 2009 by working with local partners to provide the service. This month, Orange Business Services announced that it is upgrading its IP network in Asia-Pacific, citing video conferencing support as one of the reasons for the upgrade.

All this activity in the Chinese market shows that telcos are trying to maximise their efforts to make the most of the potential of these markets. Time will tell whether the economic downturn will restrict this growth or if the emergence of HD video conferencing will enable enterprises to make much-needed cost savings to help them through this difficult period.

-- Lucy Arole, Analyst at Ovum.

Managed telepresence services to exceed $360mn in 2011

NEW YORK, USA: Telepresence, a kind of video conference providing the realistic sensation that all participants are actually in the same room, is a rapidly growing industry. The technology, however, is very expensive -- prohibitively so, for the majority of its potential users. Hence there is a growing trend toward offering telepresence as a managed service.

According to ABI Research vice president Stan Schatt, “The growth of managed telepresence services raises the prospect that soon virtually anybody, from multinational corporations to private individuals, may be able to benefit from this remarkable audiovisual experience.”

What makes telepresence more useful than phones, email, or ordinary videoconferencing? The key is the realism: in complex business negotiations body language, eye contact, and vocal realism are still critical. And for individuals communicating with distant loved-ones, there’s no substitute.

Today, telepresence managed services are still primarily used by large enterprises. But it won’t be long before small-medium businesses and eventually ordinary citizens can use the service. Schatt believes that “The price for telepresence managed services will eventually come down to where any mid-level manager can do it.”

There will also be public facilities, often in hotels or conference centers, where one can use telepresence for a fee. “That’s going to be very attractive to small businesses,” says Schatt. “Take a small business that has a supply chain relationship with an Asian company. The fee for an hour in a telepresence room is always going to be less than the cost of sending a key executive all the way to China. And fewer air miles are better for the environment.”

Many telepresence systems today are still not easily interoperable: another reason to let a service provider handle the technicalities. “We’re already seeing AT&T, BT, and Nortel being very active in this area,” says Schatt, “and India’s Tata Communications has started offering telepresence facilities in partnership with Cisco.”