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Russia’s MegaFon orders transcoders from RGB Networks

Russian telco MegaFon, one of the country’s largest with over 64mn subscribers, has chosen US firm RGB Networks to provide its Video Multiprocessing Gateway (VMG) and TransAct Packager to provide a complete transcoding and packaging solution for its new over-the-top (OTT) video service.

The service was developed by MegaLabs, an arm of MegaFon focused on launching new products and technologies, and launched in December 2012. It delivers both linear and video-on-demand programming over managed and unmanaged delivery networks to PC, phone, tablet and set-top box (STB) devices.

“With our rapidly expanding subscriber base we needed the most flexible and reliable IP video delivery solution available to keep pace with customer demands and need for quality,” said Vitaly Starodubov, COO at MegaLabs.

“MegaFon’s entry into the OTT marketplace significantly enhances our competitive position amidst the ‘Big Three’ of the Russian TV service market, and we hope to secure more than 1.5 million IPTV/OTT subscribers across all devices by 2015.

“OTT services are essential to the future of video delivery in Russia, and we needed a solution that could ensure our vision comes to fruition. RGB’s technology perfectly meets our needs and adds value to our long-term business strategy.”

The implementation was delivered through a key RGB partner and system integrator, the BCC Group. MegaFon recently ordered content protection from US firm Verimatrix for the new service.

MegaFon and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan. In 2012, MegaFon became one of the first operators in Russia to launch a 4G network.

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