1. Skitter Cable TV Negotiates and Holds Carriage Rights

Skitter Cable TV, Inc., negotiates and maintains direct agreements with content providers, including local over-the-air (OTA) channels for each DMA in which a Skitter TV system is located.

2. Skitter TV Systems are Co-located with Affiliated Telcos

Skitter owns and operates the master video headend, a state-of-the-art facility, located in Des Moines, IA. Skitter works with affiliated local telcos to provide and install the equipment needed to receive the Skitter TV signals at these locations. Skitter pays the telco for customer acquisition and billing, lease of last-mile connectivity to subscribers, and use of personnel and trucks for customer service. Working with affiliated telcos, Skitter is able to offer a high-quality and feature-rich video service in target markets, and enables the telcos to profit from the associated fees and revenue from STBs.

3. Local Telco Promotion Increases Take-rates and Audience Exposure

Affiliated local telcos receive fees from Skitter that increase as the Skitter TV subscriber base grows. In addition, they gain pull-through for their phone and data business, and are allowed to promote Skitter TV in triple-play bundles^* with those services, for a stronger competitive play in their markets. The availability of Skitter TV through a local company that customers know and trust, one that has long-standing relationships with the community, increases customer receptivity.

*Skitter TV retail pricing is set by Skitter Cable TV, Inc., and may not be discounted by affiliated member companies as part of any sales promotion or bundle.