IPTV is based on the IP interactive network, which enables full cooperation among content providers, operators and customers. Moreover, the interactive feedback channel ensures constant improvement of both content and network value. It is thanks to this integration of broadcast TV network, Internet and telecoms network together with an enhanced interaction of services that IPTV transforms traditional TV into a real value chain.

The development of IPTV is gradual and goes through three main stages:

• Stage 1: The TV becomes interactive and IP and TV services start to combine.
  
  
• Stage 2: Based on stage 1, the development of IPTV takes two directions: TV on IP and IP to TV. In the former, programs can be transmitted via IP network thus enabling end users to watch TV over mobile phones, computers and PDA as well as television. In the latter, IP content is pushed to video terminals, which become multi-functional intelligent terminals making the integration of services possible.
  
  
• Stage 3: In this last stage, a three-in-one network that integrates radio & video, data and communication services is provided.