November 18, 2004

The New York Times > Technology > SBC in Deal With Microsoft to Provide TV on High-Speed Lines

The race is finally on now that the telcos have a green light form the FCC to deploy fiber on a non-common carrier basis. This whole show has been one of timing as the FCC 'waited' for the cable companies to deploy their digital network so that facilities-based competition would exist rather than rely on the use of telco facilities by other providers of services.

The only competitive business model that makes sense is facilities-based competition. Now the question is: what becomes of the broadcast TV channels and companies. Long term that frequency spectrum is best used for wireless device connectivity and yet another competitive facilities-based alternative for broadband services, of which traditional TV/video is only one.

The deal with Microsoft is interesting. Since Verizon already has a deal with Microsoft as ISP associated with its DSL service, it makes sense for then to use MS for IP-TV too.

"Consumers will potentially have hundreds of channels to choose from, although the delivery of that programming will be different from cable's. All IP-TV programs will be delivered as video-on-demand - consumers request a program from a central server and it is delivered immediately. In contrast, cable companies typically send hundreds of channels to customers' homes all at once - although newer, digital cable systems can also send programs one by one as in video-on-demand.
Initially, SBC hopes that the Microsoft technology will allow it to simultaneously send two high-definition channels and two standard-definition channels for consumers with two televisions on at once, as well as a high-speed Internet connection to consumers. Subscribers will need to add only a new set-top box to receive the programming. SBC will also have to achieve vast increases in data speeds on its network."

No comments: