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November 17, 2004

SBC & Microsoft TV
SBC made massive strides today in their effort to offer video services over DSL, by striking a $400 million deal with Microsoft, who'll supply the video software to all future SBC video subscribers. It's also a big deal for Microsoft, who up until now hadn't had much luck breaking into consumer living rooms via the incumbents.

As part of Project Lightspeed, SBC says they'll be deploying 20-25Mbps worth of connectivity to half of their subscribers (18 million users) within three years. They'll be doing this by running fiber to the neighborhood node, then running ADSL2+ (or perhaps VDSL or VDSL2) to your front door. This is in contrast to Verizon, who is pushing for fiber straight to the home.

From there, Microsoft's TV Internet Protocol Television (IPTV) Edition software platform will manage user video content via a set-top box. SBC and Microsoft will have to fend off critics who suggest the 20-25Mbps provided won't be enough to offer full HDTV service, voice service, and broadband as effectively as FTTH or cable carriers - something the companies say they've solved via compression techniques.

(Continued at Broadbandreports)
Posted by yatta at 12:27 PM