Nagravision, PanAmSat and SkyWay Connect Team Up to Demonstrate MPEG-4 IPTV Solutions for Cable Operators at NCTA’S National Show

Wilton, CT, 6 April 2006

Joining forces at NCTA’s National Show, the Kudelski Group’s (SWX:KUD) Nagravision, PanAmSat (NYSE:PA) and SkyWay Connect are demonstrating a satellite-based secure MPEG-4 IPTV solution for cable operators and emerging network distributors.

SkyWay Connect’s IPTV system leverages the power of PanAmSat’s Galaxy satellites and Nagravision’s Nagra IP conditional access system, to create an ideal solution for operators wishing to deploy a low-cost, secure and effective IPTV platform. The system provides operators with access to programming content, including standard and high-definition channels and VOD services, in a secure MPEG-4/AVC format. The demonstration at the NCTA National Show, being held from April 9-11 in Atlanta, will highlight the content security aspects of the platform which are of great importance to customers.

“Regardless of the medium, IP protocol is clearly emerging as the preferred distribution method of digitally compressed video content. PanAmSat, Nagravision and Skyway Connect have demonstrated that by leveraging many of today’s technologies and networks, both programmers and distributors can access the advantages of secure IP video distribution,” said Bruce Haymes, SVP, Corporate Development and Strategy for PanAmSat. “The three most important concerns of programmers–security, quality and cost–have all been incorporated into Skyway Connect’s IPTV demonstration that we are supporting. PanAmSat is the first operator in the industry to support the application of a live IPTV solution with an integrated security feature that could easily be adopted by customers in the marketplace.”

As cable operators deploy IPTV networks, they must consider the bandwidth constraints from the headend to the home. MPEG-4/AVC encoding systems using satellite bandwidth and IP-based conditional access systems are a realistic infrastructure choice for delivering new services or expanding current ones such as conditional access and authorization services for operators. Both of these applications help operators reduce the costs associated with management and control of their subscriber base.

“Technology advancements in compression, headends, conditional access, set-top boxes and other consumer devices are influencing the business models of operators as they deploy next-generation delivery networks. The need for bulk encrypted and secured advanced video that can be delivered through DSL networks or DOCSIS based IP networks is growing,” said Tom Wirth, vice president, Nagravision Americas. “PanAmSat recognized the need to provide a secure video platform to its content customers. This demonstration emphasizes the value to telephone companies and cable operators of combining PanAmSat’s industry leading platform for satellite distribution and video delivery with Nagravision’s worldwide expertise in securing digital television services and content over multiple platforms such as DSL and cable.”

The SkyWay Connect platform supports an open architecture environment that allows operators to choose from many different set-top box manufacturers that are pre-integrated for use in their network. A number of these set-top boxes will be demonstrated at the PanAmSat and Nagravision booths. SkyWay Connect is working with PanAmSat and Nagravision to deliver IPTV services to small and mid-sized cable systems and telcos across North America. In addition, it plans to receive video programming from up to 200 standard-definition providers as well as 16 high-definition channels and VOD content from the top providers. These signals will be combined in an encrypted digital feed that will be sent to a single satellite and returned to authorized IPTV network distributors for distribution to their subscribers.