Mouse-controlled user interfaces, customized advertising and click-to-purchase capability were among the potential new IPTV applications discussed at the “IPTV Mindbender” session sponsored by the Alliance for Telecommunications Industry Solutions at NXTcomm Tuesday.

AT&T vice president of product and strategy Jeff Weber pointed to a capability of that company’s broadband service that lets customers program their DVRs remotely as an example of a “killer” IPTV application that can drive service usage and customer loyalty. “A certain set of customers really like it,” Weber said. The next question, he said, is “What are the next seven of those applications?”

A new user interface that works like computer mouse and would replace today’s on-screen program guides could go a long way toward improving the IPTV experience, said Andy Addis, executive vice president of marketing for Hillcrest Labs, which has developed such an interface. “To unleash the flexibility [of IPTV], you’ve got to match it to a mechanism for enabling consumers to efficiently find what they want,” Addis said.

Personalized advertising services are another opportunity for service providers, panelists said. Ibrahim Gedeon, chief technology officer for Canadian service provider Telus, said that company already has experimented with using customer information to deliver targeted messages, such as an on-screen coupon for Telus customers that were also customers of a tire company. The ability to deliver targeted advertising messages on a geographic basis sets telcos apart from on-line content providers, he added.

Ran Oz, chief technology officer for BigBand Network, a developer of advertising technology for IPTV, noted, however, that cable companies currently have the edge in generating new revenue streams from personalized advertising services because their infrastructure already supports a unicast model. “There is a unique opportunity for cable companies to drive five to fifteen dollars a month in advertising,” he said, adding that telcos need new technology at the edge of the network in order to have the same opportunity.

Another opportunity for service providers could be in enabling easier on-line purchasing, panelists said. In comparison with on-line retailers, service providers could add value by eliminating the need for customers to fill in credit card numbers and other personal information. Instead, Gedeon explained, they could simply click “OK” after highlighting an item available for purchase.

Weber was lukewarm about that opportunity, however. Customers have some interest in that capability, he said. But as he spread his hands apart, he added, “We don’t know if it’s this big or this big.”

Pointing to AT&T’s experience with remote DVR programming capability, he noted that the device that customers use to program their DVR varies depending on where the customer is located at any given time. When it comes to any other IPTV application, including electronic purchasing, he said, “The same discussion applies.”