FTTH Communications wholesales video in upper Midwest

FTTH Communications, a residential fiber-to-the-premises provider, announced this week it will offer broadcast television and video-on-demand service on a wholesale basis to service providers in the upper Midwest.

FTTH previously offered these services only to its parent company, residential real estate developer Contractor Property Developers Corp. (CPDC). Now FTTH will target independent operating companies (small rural telcos) and municipalities in Minnesota, Wisconsin and North Dakota.

For rural carriers in the upper Midwest, getting into the video business typically involves joining a co-operative to share the cost of video head-ends, said FTTH general manager John Schultz. "There’s companies who would like to get into that video business but don’t necessarily want to join that sort of a club. We’re trying to run this like a co-op without being a co-op, sharing knowledge and cost-savings across multiple groups."

FTTH has already invested in its own IP video head-end to serve CPDC’s development communities. In its three Minnesota development communities, FTTH claims to have about a 70% penetration rate of its services.

"The cable guys are moving quickly to voice," Schultz said. "If the voice guys can’t move as quickly into video, we can help them mitigate some of that timing."

FTTH has partnered with Tut Systems to deliver broadcast television, Kasenna to deliver VOD and ViewNow to aggregate VOD content. FTTH has also partnered with Minnesota-based telco Onvoy for transport, clearing a significant hurdle in providing those services on a wholesale basis. And it is currently looking for a partner that sells DSL equipment.

FTTH has no customers yet for the new wholesale services.