BT, RRsat Form Pact

U.K. telco BT's Media & Broadcast division has formed a strategic alliance with Israeli transmission services provider RRsat Global Communications Network to offer customers access to each other's transmission infrastructure and services.

The five-year agreement will combine RRsat's content management and global distribution services over satellite, fibre and IP links with BT's Global Media Network and existing satellite portfolio. Under the deal, RRsat will gain access to BT's media switch in London linking in to its Global Media Network, satellite services and dedicated bandwidth for short-term event coverage. BT's media customers will gain access to the RRsat Global Network, which currently offers distribution coverage to more than 550 channels using over 50 satellite platforms in more than 150 countries.

Each company has agreed to bring between GBP5-GBP10million ($7.4 to $14.8 million) of additional business to the other party.

"This is an important step towards the formation of a global ecosystem to support the creation, movement and monetization of content, and we are delighted to be taking that step alongside RRsat," said BT Wholesale's Media & Broadcast director of global sales & marketing, Mark Wilson-Dunn, in a statement.

"Bringing together the energy, culture and capabilities of both parties -- and both of our high-quality service standards -- promises exciting new prospects in the global broadcast and satellite market, delivering significant benefits for all our customers," added David Rivel, founder and CEO of RRsat Global Communications Network.