Verimatrix Increases IPTV Security Footprint in Russia

LONDON--(Marketwire - March 26, 2009) - IPTV World Forum 2009, Stand #160 -- Verimatrix, setting the standard in content security technologies that enhance the value of pay-TV networks, today announces three significant Russian IPTV operators that have deployed the Verimatrix Content Authority System (VCAS™) for IPTV in conjunction with regional systems integrator and reseller CTI. The integrated IPTV platform now powers pay-TV services for Iskratelecom, Tattelecom and Bashinformsvyaz and extends Verimatrix's customer base throughout Russia.

According to SNL Kagan, the pay-TV market in Russia had 14.5 million cable, satellite and IPTV subscribers at the end of 2008, yet there is still huge potential for growth in the region if pay-TV operators can demand higher prices for higher quality content and services. Operators need to ensure content owners' rights are robustly and seamlessly protected across all access platforms -- the traditional television and other Internet-connected media devices. Without this level of protection, operators are unlikely to secure content distribution deals and ultimately attract and retain customers.

Iskratelecom is an alternative operator in Moscow delivering IPTV over its own fiber-optic distribution network. Tattelecom, the largest fixed-line operator in the Republic of Tatarstan, is bringing broader access to digital content to its subscribers. Russian telco Bashinformsvyaz has recently announced its comprehensive IPTV service that will target 2,000 customers initially, with a goal of increasing its subscriber base to at least 6,000 by the end of the year.

CTI CEO Oleg Schapov commented on the partnership, "The Russian pay-TV market is evolving and operators need to find a way of providing services their customers are increasingly demanding. A robust content security system is a vital part of being able to offer a full pay-TV solution. Verimatrix's software-based VCAS for IPTV offers the flexibility and layered security techniques that have enabled us to develop a platform that minimizes deployment and maintenance CAPEX."

Steve Oetegenn, chief sales and marketing officer at Verimatrix, added, "In the IPTV industry today, access to compelling content is the cornerstone on which services thrive or fail. We provide IPTV operators with the tools to enhance their revenue streams and prevent unauthorized access to content and services. We are happy to partner with CTI, an acknowledged leader in providing IPTV solutions, which has helped propel our success in the region."

Through their reseller partnership, CTI has integrated VCAS for IPTV with its own middleware, TV engine, and acts as a systems integrator to deploy its solutions for IPTV operators. With the power of the combined solution, Russian operators are able to offer their customers a full pay-TV solution that includes set-top boxes, content protection, video-on-demand (VOD), and broadcast IPTV channels with PVR functionality coming soon.

About CTI

CTI (Communications. Technology. Innovations), is a system integrator and software development company specialized in IP-communications based in the Russian Federation. The company provides solutions for telecommunications companies and corporate customers in IP-telephony, IPTV and multiservice IP networks. CTI also is developing its own suite of software products for the telecommunications market such as billing systems, components of OSS/BSS systems, various IP-telephony applications and video-over-IP management systems. The company has a leading expertise in commercial implementations of solutions for IPTV -- 18 projects in the territory of the Russian Federation and former Soviet Republics. For more information, please visit www.cti.ru and www.tvengine.ru.

About Verimatrix

Verimatrix sets the standard for software-based content security and revenue enhancement technologies in pay-TV networks, with a global customer base of service providers. The Verimatrix Video Content Authority System (VCAS™) offers a suite of next-generation technologies that has been independently audited and ranked as the global leader in IPTV content protection. The company's 3-Dimensional Content Security approach, built around VCAS, enables secure delivery of content to multiple devices across multiple networks using multiple layers of protection techniques. Maintaining close relationships with major studios, broadcasters, industry organizations and partner ecosystem helps address the challenges facing pay-TV networks of today, and those of tomorrow. For more information, please visit www.verimatrix.com.