"Australia's adoption of IPTV is trivial [as] successful business models, revenues and cost savings haven't been determined."

He says the increasing adoption of broadband, the gradual migration to ADSL2+ and eventual FTTN will feed IPTV into the mass market.

"IPTV needs more bandwidth, so moving from ADSL to ADSL2+, to squeeze more from their copper lines, and eventually to fiber will encourage adoption," he added.

Nemertes Research president and senior founding partner Johna Till Johnson said while IPTV offers telecommunications providers revenue stolen by VOIP, and introduces more competition in the "insatiable" media content market, the converged delivery format will save it from being devoured by free rival offerings.

IPTV gives providers a sustainable consumer offering [in which its] margins aren't eroding, and by doing so, introduces competition into the content-distribution business," Johnson said.