SES locks in contracts, keeps positive outlook

SES Americom, the satellite and wholesale IPTV technology vendor behind the IP-Prime platform, seems to be maintaining a positive outlook amid increasing instances of job cuts and cost reductions around the telecom industry. How is it managing that? Long-term contracts of 10 to 15 years with its carrier customers sure help, as does the ongoing demand from end users for high-definition capabilities on top of regular programming.

The company, which also is fully funded through at least the next two years, announced last month at TelcoTV 2008 in Anaheim, Calif., that it made deals with 65 telcos in 31 states to support its IP Prime platform. The contracts were described in a Telephony story as "non-cancelable," though if a carrier customer were to fall into dire straits and bankruptcy, "non-cancelable" would be a non-factor. SES Americom does look to be in a good position with all those long-term contracts, though it is surprising that so many telcos would make such long commitments, rather than push for shorter contracts with potential extensions. Of course, many IP-Prime customers may not be big enough to have that kind of influence on their vendors.

For more:
- Telephony has an article on SES

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