The firm, which broadcasts Dáil, Seanad and committee hearings, and is involved in a dispute with 20 workers, has decided not to bid for a new contract with the Oireachtas.
Pi Communications confirmed the decision in a letter to staff, saying it had made the "difficult decision" after a "careful review" of new contract plans, which are "unsustainable".
The company has been providing footage of Oireachtas events for 15 years and will continue to do so until a new firm is selected as part of the tendering process.
In the four-page letter to staff, which was first reported by the Irish Examiner, Pi Communications' managing directors Norah Anne Barron and Conor O'Brien said the firm notified the Houses of the Oireachtas Commission that it "will not be submitting a proposal in the current competition for broadcasting services".
"Following careful analysis, Pi Comms did not submit a proposal for the new Oireachtas broadcasting contract," it said.
The company said the decision was made as it became "clear that there were a number of factors, and that when taken together, meant the framework could not be responsibly pursued in its current form".
"Continuing under the proposed terms would, in our considered view, create difficulties over the next contract cycle," it added.
Pi Communications said: "For our full-time colleagues, the expanded service requirements and scope of responsibilities carried significant risk.
"Without clear parameters, those obligations did not provide a sustainable basis for delivery within the budget and structure defined.
"For part-time parliamentary term time colleagues, the continuation of the pay per public minute model imposes limits which constrain."
Last month, the Oireachtas tendered a new contract for the provision of recording and archival services with a value of more than €8 million - a contract that is a year shorter than what was previously available and costs around €1m more to provide.
Pi Communications’ letter comes after significant media and political attention in recent weeks regarding the circumstances of 20 people employed with the company, who manage live Oireachtas broadcasts.
Those individuals said they are being paid half the standard industry rate for comparable roles.
They called on the Houses of the Oireachtas Commission to ensure they are "treated with the fairness and respect we deserve".
However, Pi Communications has previously said its pay rates for part-time Oireachtas staff "are regularly benchmarked against industry norms and their total earnings are proportionate to the overall work undertaken throughout the year".
In late summer, a number of TDs and senators from both the Government and Opposition benches promised to support such employees in their requests after being told the situation has left some of them struggling to support their families and facing real difficulties in applying for a mortgage.
Those involved, who in August protested outside of the gates of Leinster House to make their case, are classed as part-time and casual workers.
They say they earn an average of €12,000 annually.
In a statement, Pi Communications said it "did not" submit a proposal for a new contract with the Oireachtas.
It said this decision followed a "carefully considered review of the new framework and its commercial and operation terms".
It added that such terms presented a "level of commercial and operational risk that cannot be responsibly sustained".
"Those risks include continuation of the pay-per-public-minute model, and expanded technical and delivery requirements without the requisite resourcing provision," it said.
The firm said it remains focused on meeting all obligations of its current contract and supporting a "smooth and professional transition" for the Houses of the Oireachtas Commission.
An Oireachtas spokesperson said: "The closing date and time for the Houses of the Oireachtas Service tender re Provision of Televised Facilities was today at 12pm.
"The Houses of the Oireachtas Commission will consider the outcome of that process in due course."
