SBC Communications and Microsoft have a deal to offer next-generation television over the Microsoft TV Internet Protocol Television platform, the two companies announced November 17. The companies said the deal was worth $400 million over ten years, the first of its kind for an American telecommunications company.
"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 SBC chief executive Edward E. Whitacre Jr., announcing the deal. "We will deliver integrated communications and entertainment services to enhance the digital lifestyle of our customers."
SBC said they have tested an Internet protocol-based television service on the Microsoft platform since June, and the two companies will start field trials midway through 2005 in hopes of making it commercially available later in that year. Earlier in 2005, SBC plans to start building Project Lightspeed, deploying fiber closer to customer locations for new, feature-rich IP services including IP television and Internet telephony, SBC said.
"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 Microsoft chief executive Steve Ballmer at the announcement.
"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," Ballmer added.
SBC said Project Lightspeed expects to reach 18 million homes by the end of 2007, and feature instant channel changing, customizable channel lineups, video on demand, digital video recording, multimedia interactive program guides, event notifications, and content protection features.
"Our video on demand will come with a substantial content library," Whitacre said. "The customer gains additional control over the content they want versus what is delivered to them. We get the flexibility of not being constrained by bandwidth."
He also said the multimedia program guide would make it easy to find what you want to watch and complete control over when and how you watch it. "Channel surfing becomes easier,” he said, “because you can continue to watch your program while viewing live previews of other shows using innovative picture-in-picture technology."
