NRTC freezes IPTV rates

The National Rural Telecommunications Cooperative (NRTC) today announced it will freeze rates for is Expanded Basic programming package at 2008 levels for its Independent members providing IPTV. Entering 2009 in a struggling economy and with key partner SES Americom’s wholesale IP-Prime programming service set to expire in July, the business case for IPTV is increasingly coming under fire.

IP-Prime announced its discontinuation at the end of the year due to slow adoption of IPTV by small- and medium-sized telecom operators — its primary customer base — as well as a difficult market outlook for IPTV in general. Bob Phillips, president and CEO of NRTC, said the consortium still strongly believes in the market opportunity for IPTV in rural America and its long-term viability but wants to keep its programming rates steady for consumers in tough economic times.

The NRTC began working with SES back in 2006 to leverage the combined purchasing power of the group’s members to negotiate IP video content and transport contracts. The relationship also helped simplify a complex, expensive process for Independent telcos. Today, through more than 70 programming agreements with more than 40 companies, the consortium can provide its members with more than 350 video and audio channels. The co-op’s distribution agreements include rights for telcos to deliver the programming in IP and analog formats over copper, fiber or coaxial cable. The group also has rights to both these channel’s high-definition services and video-on-demand when available.

Outside of IP-Prime, the NRTC also offers programming packages for residential and consumer accounts spanning schools, hotels, restaurants, small business offices and multiple-dwelling units. The NRTC also offers full, ongoing contract management and services and support to its 1400 rural members spanning 47 states.