Russia’s TTC rows back on IPTV rollout

Russian service provider TransTeleCom (TTC) is scaling back plans to launch IPTV services in small and medium-sized towns and cities, citing a lack of purchasing power by inhabitants to acquire set-top boxes.

TTC head of access networks Svetlana Shamzon told local journalists that the market for IPTV services in smaller towns was difficult and that the company would focus instead on laying fibre-optic lines and the development of wired and wireless internet in remote areas. TTC will continue to provide cable TV services over existing networks. The company currently has about 120,000 TV subscribers.

TTC, owned by the Russian state railways, in January announced ambition plans to triple its TV base in the course of this year.

Broadband and cable TV accounted for about 15% of TTC’s revenues last year, with 56% accounted for by backbone communication services. The company has a 6% share of the residential broadband market, with about a million customers.