A buzzword in the cable/ilec world is IPTV, a plan to deliver TV over IP. Microsoft and several other companies have built IPTV offerings, to give phone and cable companies what they like to call a “triple play” (voice, video and data) and be the one-stop communications company.

IPTV offerings have you remotely control an engine at the central office of your broadband provider which generates a TV stream which is fed to your TV set. Like having the super set-top box back at the cable office instead of in your house. Of course it requires enough dedicated bandwidth to deliver good quality TV video. That’s 1.5 to 2 megabits for regular TV, 5 to 10 for HDTV with MP4.

Many of the offerings look slick. Some are a basic “network PVR [Personal Video Recorder]” (try to look like a Tivo that’s outsourced) and Microsoft’s includes the ability to do things you can’t do at your own house, like tune 20 channels at once and have them all be live in small boxes.

I’m at the pulver.com Von conference where people are pushing this, notably the BellSouth exec who just spoke.

But they’ve got it wrong. We don’t need IPTV. We want TVoIP or perhaps more accurately Vid-o-IP. That’s a box at your house that plays video, and uses the internet to suck it down. It may also tune and record regular TV signals (like MythTV or Windows Media Center.)

Now it turns out that’s more expensive. You have to have a box, and a hard drive and a powerful processor. The IPTV approach puts all that equipment at the central office where it’s shared, and gets economies of scale. How can that not be the winner?

Well for one, TVoIP doesn’t require quality bandwidth. You can even use it with less bandwidth than a live stream takes. That’s because after people get TVoIP/PVR, they don’t feel inclined to surf. IPTV is still too much in the “watch live TV” world with surfing. TVoIP is in the poor-man’s video on demand world (like NetFlix and Tivo) where you pick what you might want to see in advance, and later go to the TV to pick something from the list of what’s shown up. Tuns out that’s 95% as good as Video on Demand, but much cheaper.

But more importantly, it’s under your control. Time and time again, the public has picked a clunkier, more expensive, harder to maintain box that’s under their own control over a slick, cheap service that is under the control of some bureaucracy. PCs over mainframes. PCs over Network Computers and Timesharing and SunRays. Sometimes it’s hard to explain why they did this for economic reasons, or even for quality reasons.

They did it because of choice. The box in your own house is, ideally, a platform you own. One that you can add new things to because you want them, and 3rd party vendors can add things to because you demand them. Central control means central choice of what innovations are important. And that never works. Even when it’s cheaper.

If the set top box were to remain a set top box, a box you can’t control, then IPTV would make good sense. But we don’t want it to be that. It’s now time to make it more, and companies are starting to offer products to make it more. We want a platform. Few people want to program it themselves, but we all want great small companies innovating and coming up with the next new thing. Which TVoIP can give us and IPTV won’t. Of course, there are locked TVoIP boxes, like the Akimbo and others, but they won’t win. Indeed, some efforts, like the trusted computing one, seek to make the home box locked, instead of an open platform, when it comes to playing media (and thus locking Linux out of the game.) A truly open platform would see the most innovation for the user.

Disclaimer, I am involved with BitTorrent, which makes the most popular software used for downloading video over the internet.