Broadband TV - more accurately called IPTV (Internet Protocol Television) - is the marriage of two unlikely partners: the personal computer and the TV set. It has already landed in our living rooms, but still in a form that’s indistinguishable from regular TV broadcasting. The real power of this medium has yet to be utilized, but it will develop with meteoric speed and have massive commercial implications.

We are all familiar with PCCW’s NOW. Elsewhere, Japan, South Korea and Singapore are already piping IPTV programs into their networks. In Europe, France Telecom’s MaLigne TV has been providing live TV and Video on Demand (VoD) since 2004, and FastWeb is doing the same in Italy. In the US, SBC is betting US$4 billion on this technology. It hopes to have 18 million homes hooked up to its service (project “lightspeed” by 2007. Motorola and Scientific Atlanta will build the set-top boxes, while Microsoft will provide the IPTV Edition software.

Several years ago, nobody would have envisioned TV programs being piped down through those data cables. Today it is a worthy alternative to Cable TV. Tomorrow, it will be the choice of armchair enthusiasts. For retailers and marketers, this is one of the truly golden opportunities offered by the Internet, and something that every consumer-related business will be able to benefit from.

Commercial break-through

TV commercials will almost certainly lead the way in exploring the potential of IPTV, and may well redefine the consumer shopping experience. The consumer will be invited to respond immediately to a commercial, using an input device - initially a keyboard or a remote control, but with more radical options to come at a later stage - to access a web site, sift through a whole host of product options, or simply sit back and be presented with purchase options. Thanks to the power of the Internet, you’ll be able to explore and access information about all manner of goods and services. But, most importantly, once you’ve made a decision you’ll be able to make a purchase immediately with a single click.

”Broadband allows the use of graphics and video to reach out to your customers and get them interested,” says Ian W Johnston, an independent consultant for the local telecommunications industry. “At the same time it, allows the customers to exchange a lot more information with you.”

Conversations with the box

With IPTV, you’re also going to start talking to your television. The technology to do this already exists in the world of console gaming. The latest generation of consoles allow you to chat with your friends across the world while playing a game, and in the near future this feature will become standard on TVs. With the new advances in VoIP (Voice over Internet Protocol, which includes the introduction of Skype and similar services), talking to your friends while watching a TV show, video conferencing through your TV, or discussing a TV program while you’re watching it will become a standard form of communication just as text messages are today.

Talk to the hand

But despite this ever-growing communication power sitting in your living room, co-ordinating it will soon be easier than ever before. With IPTV, all you’ll have to do is point your finger. Again, it’s technology that already exists in the market - in video gaming. Playstation 2 uses a video camera - called EyeToy - to zoom in on your movements and relate them to movements on the screen. That means when you kick, onscreen you’re kicking the bad guys. With IPTV, the applications will obviously be very different. When it’s refined and incorporated into your TV set, you’ll be able to use your hands only - and without touching anything - to select from menus, surf the net, turn up the volume or switch channels. Combine this with voice recognition and the convenience becomes unlimited.

Taking it with you

But IPTV’s eventual success depends on the battle of the “last mile” the part technologists refer to as the point where you connect your PC or TV through the broadband wall socket to a broadband network. Currently that is owned by the network providers, like PCCW. New service providers will need to strike deals with network providers in order to reach consumers, and that could be tough. The alternative: cut those wires. Wireless broadband opens up a whole new level of convenience and cost savings for businesses and consumers.

“Wireless is now bypassing the “last mile” which traditionally has been about laying the cable to the customer,” says Mr Johnston, “Few wireless protocols like WiMAX are now bringing high speed broadband to customers without the need for wires.” Some cities are already enabling wireless broadband - which means you can view IPTV anywhere within the city, even on the MTR. Tomorrow’s citizens will be catching their favourite shows while on the way to work, chatting to overseas friends through VoIP, and making a reservation with their favourite restaurant. Nokia’s new N92 phone already caters for such technology.

It also means marketers can reach out to their potential customers more efficiently. Picture this: You are watching a movie trailer, and the cinema located at your next MTR stop advertises to you about a promotion for the movie if you drop by with your date immediately. And yes, with your favourite pepperoni pizza at an unbeatable price. Those kind of marketing ploys will be very persuasive - and common.