Watch Telephony's Security Webcast Find out what Verizon Business is doing with managed network security and how service providers can cash in with this new service. Watch Telephony's Webcast today.

IPTV providers doled out advice to service providers thinking about entering the video services market at an IP video panel on Tuesday. Hong Kong's PCCW talked about the importance of pricing the service correctly, while rural U.S. providers D&E and Iowa Network Services stressed how crucial it is for providers to understand the local communities they serve.

Since the 2003 launch of PCCW's broadband TV service in Hong Kong, the telco has garnered more than 400,000 customers. The company attributes this success to a number of factors, including its competitive a la carte pricing that lets customers pay for only the content they want. The company has found this pricing drives customers to sign up for the service. Still, the company has also found success upselling those customers by marketing mini-packs, or bundles of ten channels, to subscribers.

"Mini-packs drive up ARPU," said Paul Berriman, head of strategic market development for PCCW.

In addition, Berriman emphasized the importance of starting with a large broadband subscriber base before offering video services. PCCW currently has about 650,000 broadband subscribers. But that doesn't mean service providers should treat video services as a value-add business. "Service providers should treat it as a full pay-TV business," Berriman said.

PCCW also relies on killer content, such as ESPN, and a good outbound call center to drive sales.

When D&E began to market video services to subscribers in rural Union County, Pa., the company discovered that a big selling point for customers was the clarity of the picture.

"The level of quality of the local cable TV service was erratic," said Scott Sandall, vice president of marketing at D&E. Other differentiating factors include on-screen caller ID and voice mail, bundled high-speed Internet, a program guide, parental controls, pay per view and free installation.

D&E also has kept the local community in mind when developing content and services.

"Several years ago, another provider wanted to bring adult programming to the market and there was a lot of controversy, so we decided not to do that even though it is really profitable," Sandall said.

The company also kept in mind the fact that a large percentage of its residents are older and not as tech savvy. To that end, the company created Bob Fox, the churn preventer. Several days after the TV service is installed, D&E sends out Bob Fox, who visits new subscribers and walks through the service with them.

"The company gets feedback about what causes customers frustration and it establishes dialog," Sandall said.