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Lyra Research surveyed 1,000 people, who expressed interest in switching to television provided by the phone company. The survey examined consumer usage of advanced digital-video services, broadband-Internet access, and cellular and landline telephones; interest in new features enabled by triple-play integration; and attitudes toward existing and potential television-service providers.

"Our survey findings support that telco's best strategy for breaking into video and establishing initial market share will be to undercut cable's triple-play pricing," says Steve Hoffenberg, principal analyst for the DTV View report series and Lyra's director of electronic media research.

The problem is that Telco's are considering video as a value-added product to generate additional revenues and profits, and not as a teaser product to offer at or below cost. There's a major investment required to distribute streaming video over IP networks and someone's got to pay for it...