"Setting up the infrastructure is expensive and [Australia] is such a small market," Golden Sachs Analyst Craig Murray said.
"[The networks] need to pull together to justify capital expenditure," Murray said.
The Australian Internet report by Golden Sachs revealed Australian free to air networks "may find it challenging" to rollout iTV networks. This is due to the networks current free to air services, which will prove difficult to migrate across to a service where consumers have to pay.
The report also revealed to keep in step with the Pay-TV operators, Channel Seven, Nine, and Ten should share costs of development and infrastructure to recover costs of the deployment of iTV services.
Pay-TV operators - such as Foxtel, Optus Vision, and Austar Communications - will be able to deliver iTV services earlier than free to air networks as they have the infrastructure and subscription based services in place, which won't change the way their customers interact with them.
"They already have a billing relationship with customers, which makes it easier to migrate across from Pay-TV services to iTV," Murray said.
Pay-TV operators also have the set top boxes in place necessary to deliver iTV.
However, the true leader in iTV delivery will be Austar, with its rollout of preliminary enhanced TV services mid next year, according to Murray.
"Austar will begin with a very basic contexualised service based on existing TV content, such as the rollout of email, and the ability to chose different camera angles when watching sport," Murray said.
Australia will experience a very slow adoption of iTV services - even amongst the leaders - placing the country two years behind the United Kingdom in the take-up of full iTV services.
"iTV is a very long time away," Murray said.
