Video gets personal

It is a foregone conclusion among Independent telcos that traditional transport-and-connection services will never be enough to stay afloat. Even IPTV is still largely a “me-too” play, but one that may be necessary to remain relevant in an increasingly competitive environment. To move beyond mimicking cable and satellite and into a truly differentiated service, Independents today are walking the fine line between IP-enabled opportunities and the often daunting expense of personalized video services.

Tom Nolle, founder and president of technology consultancy CIMI Corp., described this careful balance as the choice between deploying one stream to 10 million customers at one price or deploying 10 million unique streams at essentially 10 million times the cost of broadcasting that same stream to all. It might sound like a no-brainer — that is until the opportunity for personalized advertisements and additional revenue-generating services through personalization are factored in. While most rural telcos never will reach 10 million consumers, the choices they are making become even more significant considering their limited budgets.

“For the Independent rural telcos, video represents a challenge that is so formidable potentially that it may mean they are going to need some special regulatory treatment or Universal Service subsidies in order to make it work,” Nolle said, adding that such opportunities are not yet available.

No one understands this more than Chris Davidson, general manager of Northern Wyoming service provider TCT. A subsidiary of the TriCounty Telephone Association in Basin, Wyo., TCT provides video service to 2500 residents. Considering its limited subscriber base, TCT has focused its personalized ambitions on local content, opting not to use a video-on-demand (VOD) model.

“We knew we weren't ever going to be the company who had NFL Sunday Ticket or some of the really super-premium stuff,” Davidson said. “We opted instead to go down the road of making the video more personal, more local and fulfilling that niche instead.”