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

With shareholders and investors a bit up in arms lately regarding the recent market activity of Eagle Broadband (AMEX: EAG), corporate management is on a mission to both improve operational efficiencies and keep EAG listed on the AMEX.

News this week only exemplifies that fact that Eagle’s corporate team means business. Recently we have learned that EAG has agreed to purchase Connex Services, Inc., a Houston-based provider of IT-based services. Connex does an estimated $600k in annual revenues, not too shabby! In addition to bringing in a significant amount of cash, the artful acquisition is expected to facilitate growth of EAG’s IT services division by more than 35% (in terms of both accounts and incoming revenues).

At a cost of 1,203,774 shares of unregistered Eagle Broadband common stock, EAG believes that this is one of many moves that the company needs to make to both diversify its business and fuel future growth. Furthermore, the agreement stipulates EAG will not assume any of Connex’s debts or liabilities, a huge bonus as Eagle lays the foundation for a lucrative future.

So at this point, like I was, I am sure many subscribers are wondering what this recent announcement has to do with big picture for Eagle. The majority of EAG’s news releases have been strongly focused on IPTV and SatMax in recent months. Any investor following Eagle would wonder, “What calls for the acquisition of an IT services provider??”

After a little research, I can answer that question. There is more here than meets the eye. According to Tuesday’s announcement by EAG, Connex provides “national and international project management services for data, voice, fiber-optic, wireless, hospitality systems, access control, audio and satellite installations”. This acquisition, in addition to aiding a struggling bottom line and strongly complementing EAG’s existing IT services business, will provide greater visibility for EAG in its key markets. Exposure in this arena can mean the difference between a 5 cents stock and a 5 dollar stock. Many of EAG’s newly-acquired clients will also be targets for its ready-to-rock IPTV product/service offering.

Through strategic moves like this one, EAG is exposing their product to a larger captivated market and broadening thief offering. With more eyes on the company, potential business opportunities will present themselves. We, at MSP, never claims to be psychics. We have no crystal ball, but as the IPTV market begins to pick up steam (expected to become a $40 billion market by 2010), a prediction like EAG’s success is just common sense. For a little refresher course on EAG’s positioning in the marketplace and why we think this one is going to be an industry frontrunner, check out the most recent coverage of the company by Amalfi Research Group, Ltd. - EAG Research Report.

Labels: AMEX, EAG, Eagle Broadband, IPTV, SatMax