SBC To Use MSNTV For IPTV Broadcasts

The SBC IPTV deal with Microsoft, valued in excess of $400 million over 10 years, is the first of its kind for any U.S.-based telecommunications provider.

SBC Communications Inc. has announced an agreement with Microsoft Corp. to provide next-generation television services using the new Microsoft TV Internet Protocol Television (IPTV) Editionsoftware platform.

“Our service will change the way people experience TV. Finally, customers will watch what they want, when they want — from a virtually unlimited and interactive content selection,” said Edward E. Whitacre Jr., SBC Communications Inc. chairman and CEO. “We will deliver integrated communications and entertainment services to enhance the digital lifestyle of our customers.”

SBC Labs has been testing an IP-based television service built on the Microsoft TV IPTV Edition platform since June 2004. SBC companies and Microsoft will begin field trials in mid 2005 and plan commercial availability of the IP-based television platform in late 2005.

In the first quarter of 2005, construction is expected to begin on the SBC Project Lightspeed, the company’s initiative to deploy fiber closer to customer locations to provide new, feature-rich, IP-based services, including IP television, voice over IP (VoIP), and ultra-fast Internet access. Project Lightspeed is expected to reach 18 million households by year-end 2007.

“Project Lightspeed and the Microsoft and SBC relationship underscore what the future holds for consumers: a virtually unlimited opportunity for innovative, cross-device services and entertainment experiences enabled by the marriage of powerful broadband networks with the magic of software,” said Steve Ballmer, CEO of Microsoft. “The selection of Microsoft TV as the IPTV services platform provider for SBC recognizes Microsoft’s leadership position in the rapidly emerging IPTV industry and the benefits it will bring to customers.”

Microsoft TV IPTV Edition also provides strong security features and efficiency in delivering standard and high-definition TV programming to multiple TV sets in the home over the SBC fiber-enhanced network, while leaving ample bandwidth available for ultra-fast Internet access and VoIP services.