MegaFon launched its OTT service in December 2012 with compelling interactive capabilities to not only respond to the substantial rise in mobile internet users nationwide, but also to retain and increase its 61.6 million subscribers, which represent a market share of 27.1 percent of Russia’s mobile users.  This digital TV product was created and is being developed by MegaLabs, a MegaFon innovation arm aimed at launching and monetising new products and technologies to serve MegaFon subscribers.

“With our rapidly expanding subscriber base we needed the most flexible and reliable IP video delivery solution available to keep pace with customer demands and need for quality,” said Vitaly Starodubov, COO at MegaLabs.  “MegaFon’s entry into the OTT marketplace significantly enhances our competitive position amidst the ‘Big Three’ of the Russian TV service market, and we hope to secure more than 1.5 million IPTV\OTT subscribers across all devices by 2015.  OTT services are essential to the future of video delivery in Russia, and we needed a solution that could ensure our vision comes to fruition.  RGB’s technology perfectly meets our needs and adds value to our long-term business strategy.”

The implementation was delivered through a key RGB partner and system integrator, the BCC Group.

“We received excellent support from both RGB Networks and its partner BCC, who provided us with exceptional service throughout the entire deployment process to ensure that the solution was up and running in record time,” continued MegaLabs’ Starodubov.

The VMG’s scalable and reliable multi-stream processing capability represents a sound investment for future-proofing of services and met MegaFon’s requirements to initially facilitate the delivery of high-quality content to iOS devices and IP set-top boxes, with support for Android devices planned for later.  With its high performance transcoding capabilities, the carrier-class VMG works in tandem with the critical adaptive streaming functionalities of RGB’s TransAct Packager, enabling MegaFon to seamlessly deliver OTT services to a growing selection of popular end user mobile devices without concerns for supporting growth in channels, resolutions, profiles or device types.

“We are very pleased to have helped one of Russia’s largest and internationally acclaimed operators enter the OTT marketplace,” said Ramin Farassat, Vice President, Product Marketing and Business Development for RGB Networks.  “Known for being technically advanced, selection by MegaFon is a testament to our products’ next-generation capabilities.  We are delighted to play a part in enabling forward-thinking customers, such as MegaFon, expand their customer reach and ultimately improve their bottom line.”