Unless you've been living under a rock for the last year, it shouldn't come as a surprise that telcos are rushing into the IP video market. But it appears that the cable market is catching on to the benefits of IP.

Late last year, Citizens Cable, based in Mammoth, Pa., became the first traditional cable operator to install an IP headend. Using Tut Systems' platform, the company is transmitting IP video internally to a quadrature amplitude modulator and then sending signals over both a fiber-to-the-premises access network and traditional hybrid fiber/coax. The company currently offers 130 standard-definition channels and 10 in high definition.

Dennis Cuttro, Citizens general manager, said the company is looking at IP video as a way to expand its horizons.

“Even with fiber, there are some limitations to [traditional radio frequency] systems,” he said. “Our needs immediately were that we had a traditional RF system, but looking down the road, what's easier to do? This gives us the ability to do an IPTV system even in our traditional cable system.”

The economics of RF boxes, where Motorola and Scientific-Atlanta essentially have a duopoly, played a major role in the decision to try IP, he added.

“When you go into the IP world, there are some pretty good boxes out there,” Cuttro said.

“We can sit back and say we've got a lot of options now.”