Linköping-based Kreatel Communications is in the lead, ahead of both Ericsson and Nokia, with a system for IP-TV. IP-TV gives households access to both the usual television channels and Video-on-Demand via broadband networks and the Internet Protocol. In June, the company received its first major order from the Italian network operator Fastweb Spa.
The Italian order is worth SEK150m ($15m), but the new global market is truly huge. In mid-September, Kreatel's MD Lars Bengtsson promises to announce several more new contracts with network operators both in Sweden and abroad.
"My guess is that several operators will start to offer IP-TV in 2002. In 2004, IP-TV will be a major service," says Lars Bengtsson.
The company is the first to offer a fully functional IP-TV system and, having secured a substantial order, Kreatel hopes to become one of the main system vendors on the market. If the company succeeds in this, it will be a real achievement by such a small company. Giants like Ericsson, Nokia, Pace, Motorola and Scientific Atlanta will be competing within the same market. The latter four are already major suppliers of technology for analogue television systems.