IPTV -- The Killer App for Rural Telephone Companies

In the US, new competitive pressures coupled with fleeing voice subscribers are luring rural telephone companies to deploy IP TV services including broadcast video, high-definition TV (HDTV), and Video on Demand (VoD). IPTV, when bundled in a Triple Play package with digitized voice and high-speed data, is helping Telcos compete with cable and wireless companies that are threatening to step on their turf.

“What our Telco customers are experiencing right now is increased competition from wireless providers, cable operators, broadband over power providers – even larger telephone companies. What these providers have figured out is that by adding voice to their existing video, data, and power services, they can entice previously loyal subscribers to move away from their local Telco, said Kevin Brown, VP of Marketing for Pannaway. With the transport technologies that are currently available Telcos have a tremendous opportunity to leap frog their competitors and IP TV appears to be the biggest driver.�

One Oklahoma-based Telco, Cross Telephone is deploying a true Triple Play service rollout with IP TV proving to be the hottest application of the big three. Cross has specialized in the provisioning of local and long distance telephone since 1953 providing services to approximately 9,000 subscribers in several Oklahoma counties. Cross had been experiencing an increase in subscriber access terminations in conjunction with a decrease in qualified reimbursements from the federal Universal Service High Cost Fund (USF). In search of new revenue streams to offset lost USF relief Cross turned to Pannaway for an IP network that would support new emerging applications like IP TV.

Prior to the Pannaway implementation, Internet services were only made available at ADSL speeds. The new IP-based solution – which utilizes ADSL2+ technology for wirespeed performance – enables Cross to deliver full digital voice, video, and data services with a major increase in total bandwidth over the existing loop. The network also provides Cross with the ability to deliver digital services at reaches of 18,000 feet – significantly better performance than existing DLC technology can offer. In addition, Cross can now offer significantly more throughput and can accommodate three plus set top boxes (STBs) per home without sacrificing Quality of Service (QoS) – significantly impacting customer satisfaction and retention rates

The deployment of a true Triple Play of digital services has not only enabled Cross to recover declining subscriber revenue, it is also helping to satisfy consumer appetite for better and faster interactive communications. And, because the solution qualifies for federal reimbursement dollars Cross is able to offset the cost of ongoing deployments and new market rollouts.

Cross is currently leveraging IP TV to effectively compete with local cable companies that have been threatening their business and the prospect of new emerging applications looks promising. Brown explains, “Because IP TV is delivered over the same infrastructure as the Internet, any service that is currently offered online can be offered via IP TV. As a result, Telcos can now tap into enormous new revenue possibilities by offering services ranging from email to online gaming. Plus, rather than being impeded by significant system upgrades, IPTV can actually accelerate time to market for any of these new services.�

Pannaway views itself as the access provider or the highway for bandwidth intensive applications like IP TV to ride on. The company stands firm that their end-to-end access solution was architected from the ground up to support the existing and emerging needs of rural telephone companies. Pannaway claims to be working with as many as 40 Telcos across the country on similar Triple Play and IP TV deployments and future product/feature capabilities will include Fiber-to-the-Home (FTTH), enhanced Call Control Management software, and a stable of new performance enhancements that will significantly improve IP TV performance.

www.pannaway.com