Referred to by many as the future of television, Internet Protocol Television (IPTV) is expected to explode over the next few years, both in terms of adoption rates and revenues. Analysts are envisioning a market that will house 50 million subscribers by ’09 and be worth nearly $40 billion by ’10. While many tier-one industry players employ a wait-and-see approach, Eagle Broadband Inc. (AMEX: EAG) is making moves today.

One of the few companies with Hollywood studio and major entertainment channel content distribution rights, and to our knowledge, the only widely deployed IP high definition set-top box in the hospitality industry, EAG is poised to become a market leader. While many in the IPTV space have grand visions for the future, Eagle Broadband, Inc. is pursuing customers today and is one of very few that have brought an effective solution to market at this point in time.

Exemplifying this fact and proving to investors that management is dead serious about building an IPTV giant, EAG announced today that it has entered into a multi-year agreement with FrontGate Broadband, a multi-service broadband provider, to deliver IPTV services to condominium and master planned properties in Florida.

Although Eagle management has not yet and likely will not provide guidance on the financial implications of this deal, we do know that, according to the company, FrontGate has a dedicated customer base of what it claims to be thousands of customers. In our opinion, a deal with a fast-growing (main focus is on fastest growing, multi-unit populations of FL.) and well established communications solution provider such as the one announced today will do nothing but positively impact EAG’s growth going forward.

In a testament to the capabilities of EAG’s IPTV business, David Suarez, president of FrontGate MediaCom (and former CEO of All Access Technologies) stated, “Eagle’s IPTV content-delivery capabilities are unmatched in the industry,” “With the ability to deliver over 250 channels of in-demand, high-definition programming, we can truly provide complete luxury service bundles to our high-end clients. Furthermore, since FrontGate Broadband already has numerous properties that are expected to be under contract in the near future, we expect to have active subscribers shortly.”

For those of you not up to speed on the basis of EAG’s IPTV business, here’s a quick rundown: The company’s solutions enable broadband cable providers, hospitality organizations, and builders within the fast growing MDU (Multiple Dwelling Unit) marketplace to provide more than 200 channels of premium viewing and also reap the benefits of sales associated with Pay-TV, high-definition (HD), personal-video- recording (PVR), video-on-demand (VOD) and subscription video-on-demand (SVOD) related purchases. In a nutshell, EAG equips client companies like FrontGate Broadband with the content that they need to maximize revenues.

Still not convinced that the IPTV revolution is upon us, well it appears that Ericsson is. The company has offered up $1.4 billion in a bid to amplify its IPTV offering by acquiring Tandberg Television. Furthermore, a simple search on Google news will yield more coverage of the IPTV market than you will likely be able to stomach. The market surely has not come anywhere close to hitting its $40 billion target, but interest is indeed at an all time high and IPTV-related business deals are being closed at seemingly light speed.

Recent discussions with Eagle Broadband executives have us extremely optimistic of what the next 6-12 months has to hold for the company’s IPTV business. This may be one of EAG’s first big IPTV-related contracts, but we have a feeling it won’t be the last. Need a little refresher on Eagle Broadband Inc. (AMEX: EAG)? Check out our corporate information center @

http://www.microstockprofit.com/Companies/Company7.stgx

Labels: EAG, Eagle Broadband, IPTV, SatMax