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Valley Telephone Cooperative Selects NRTC and Pannaway Technologies for Next-Generation IPTV Deployment; Pannaway's Ultra-broadband Triple Play IP Access Platform First to Support Video Transport Service from SES AMERICOM and NRTC.

PORTSMOUTH, N.H. -- Pannaway Technologies, Inc., designers and developers of next-generation, converged IP broadband systems to telecommunications companies, today announced that Valley Telephone Cooperative, Inc. (VTCI), one of the first telcos in the U.S. to deliver residential DSL service to its entire service area, has selected and deployed its multi award-winning Service Convergence Network (SCN(TM)) IP access platform for the delivery of ultra-broadband Triple Play services to residential and business subscribers in 17 exchanges across 19 counties in South Texas.

VTCI, a 54-year-old cooperative based in Raymondville, Texas, is migrating its legacy ATM and TDM infrastructure to a common IP/Ethernet network that delivers the technology flexibility and bandwidth scalability to support next-generation communications and entertainment services. The coop's new IP network delivers high-bandwidth Triple Play broadband services which include traditional telephony, Voice over IP (VoIP), high-speed data and IP television - all over Pannaway's ADSL2+ Broadband Loop Carrier (BLC) technology. In future deployment phases, these same services will be made available to approximately 6,200 additional subscribers in surrounding areas.

"The one thing that impressed us the most about Pannaway's IP system, above and beyond the extended reach and rate that we're seeing over our ADSL2+ lines, was how quickly and effortlessly they were able to get IP video running", said Dave Osborn, general manager of Valley Telephone Cooperative, Inc. "Their BLC products really do work right out of the box as advertised."

Headlining its new ultra-broadband line-up is IP-PRIME(TM), a highly advanced MPEG-4 satellite video transport service created through a partnership between SES AMERICOM, the National Telecommunications Cooperative Association (NTCA) and members of the National Rural Telecommunications Cooperative (NRTC). IP-PRIME will enable rural telcos like VTCI to receive and distribute hundreds of video channels in their service areas over DSL, fiber optic and hybrid facilities at greatly reduced capital costs. Using IP-PRIME, telcos will have an end-to-end IPTV solution that significantly reduces headend and conversion equipment costs while eliminating the burdensome operational expenses traditionally associated with a self-built and maintained IPTV headend system.

The IP-PRIME system is also designed to allow easy integration of local broadcast signals at the telco's headend enabling VTCI to deliver standard and high-definition television (HDTV) as well as video-on-demand (VoD) programming, digital video recorder (DVR) and music services.

"Through the use of MPEG4, the amount of bandwidth used by a video signal is about one-half of that needed for delivery using the existing standard of MPEG-2", said Mike Carney, NRTC's national sales director for IPTV. "MPEG-4, combined with the delivery of a high-performance IP network, allows telcos like VTCI to use DSL for the delivery of high-definition television and additional channels simultaneously to the home."

VTCI's new Triple Play network consists of Pannaway's Broadband Aggregation Routers (BAR(TM)) which deliver Gigabit Ethernet-based transport with the capacity to scale to 10Gbps, ADSL2+ Broadband Access Switches (BAS(TM)) and Residential Gateway NIDs (RGN(TM)). Pannaway's SCN platform delivers full Triple Play service capability in one tightly integrated solution that leverages the simplest and most scalable access technologies available - IP and Ethernet.

Osborn adds, "Pre-existing bandwidth restrictions with our legacy access system had prevented us from adding new Triple Play customers at will. Now, our new network from Pannaway enables us to expand advanced voice, video and data services to our entire service area resulting in more economical service pricing for our subscribers and an increased bottom line for our cooperative members."

Pannaway's highly-acclaimed Broadband Access Manager (BAM(TM)) is also being used by VTCI to simplify the deployment, provisioning and ongoing management of its new IP and Ethernet-based broadband equipment and services.

"The turnkey solution offered though NRTC will provide an efficient and cost-effective model for telcos of all sizes to launch IP video services", said Mark Carpenter, president of Pannaway Technologies. "IP-PRIME in conjunction with Pannaway's easy-to-deploy, high performance IP access platform significantly breaks down the barriers for rural telco providers to bring high-revenue IP video services to market."

About NRTC

NRTC leads and supports more than 1,300 member organizations by delivering telecommunications solutions to strengthen member business, promote economic development, and improve the quality of life for rural America. The rural utilities that make up NRTC offer services to more than 30 million rural households in the United States.

For more information, please visit www.nrtc.coop.

About Pannaway Technologies

Pannaway delivers customer-proven, ultra-broadband access solutions that enable telephone companies to offer new advanced services to their rural subscribers. Based on industry-standard Internet Protocol (IP), Ethernet and session initiation protocol (SIP) technologies, Pannaway's Service Convergence Network (SCN(TM)) architecture allows telecommunications service providers to increase revenue through the delivery of converged Primary Line VoIP(SM), high-speed data and IP TV services. The privately held company is headquartered in Portsmouth, New Hampshire, and has been building innovative broadband access solutions and service/support programs to fit the specific needs of rural telecom providers since 2002.

For more information, please visit www.pannaway.com.
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Publication:Business Wire
Date:Jun 28, 2006
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