Convergence - Obstacles To Convergence

OBSTACLES TO CONVERGENCE

While cultural, lifestyle, and economic considerations may have slowed consumer acceptance, convergence had some technological obstacles to overcome before iTV became more widespread. Interactive applications can be offered by any type of TV operator, such as cable, satellite, or terrestrial broadcast. However, iTV also requires a return path, which may be cable, DSL, dial-up, or wireless. With so many different delivery networks, interactive platforms are expected to remain fragmented for many years to come. By the early 2000s, a single standard had yet to be developed.

Another obstacle involved the high cost of cable TV, both in term of the large investment required by providers and the subscription cost to consumers. Since iTV requires broadband technology to deliver interactive services, its penetration in the consumer market is dependent on broadband availability and acceptance. With limited broadband deployment, nearly half of all U.S. television households in late 2000 were without access to the high-speed service required for many iTV applications. As a result, the convergence represented by iTV was only available in select markets.