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SES Americom to shutter IP Prime service

Tue, 12/16/2008 - 7:35am
Mike Robuck

Citing slow adoption of IPTV services by small- and medium-size telcos, SES Americom announced it will close its IP-Prime service in North America by July 31.

SES Americom also said “the difficult market outlooks for this kind of service” was another reason for pulling the plug on the service that provided video feeds to smaller telcos. 

“In line with its plan, IP-Prime has contracted IPTV signal delivery agreements with 70 small telecom operators, of which 37 have so far reached commercial stage. However, with a subscriber base of less than 10,000 at the end of November and after more than two years of service, the consumer uptake is insufficient to justify continuing operations,” said Rob Bednarek, president and CEO of SES Americom-New Skies.

By extending the service until July, SES Americom said telco operators will have an opportunity to orderly transfer their services to another provider.

SES said it does not expect that the termination of IP-Prime will materially affect its financial guidance for 2008 and 2009 related to revenues and EBITDA.

At last month’s TelcoTV show in Anaheim. Calif., COO James Ducay painted a positive outlook for the IP Prime service, citing deals with 65 telcos with more in the works.

Instead of using a service like IP Prime, telco operators could opt to provide video services from an over-the-top provider, which was the topic of Vudu’s Edward Lichty’s, executive vice president of strategy and content, keynote address at TelcoTV.

More Broadband Direct:

• SES Americom to shutter IP Prime service

• Virgin Media launches 50 Mbps service

• Concurrent connects with Invidi, Biap for interactive ads

• Report: Qwest an attractive target

• Vudu bows new Internet applications platform

• Telstra DQ'd from Oz broadband plan

• SCTE taking nominations for 7 open board seats

• Broadband Briefs for 12/16/08

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