The folks in Redmond must be happy and relieved after BT decided to enter into a commercial agreement to use Microsoft's IP-TV Edition software. The deal comes on the heels of Telstra deciding not to proceed with an IP-TV trial using Microsoft's software, while Swisscom and SBC have delayed the launch of their commercial services. BT said it will conduct IP-TV trials early next year before launching a full-blown commercial offer in the summer. It is hard not to get the idea the buzz surrounding IP-TV is running ahead of the technology. While Microsoft is working on a key part of the IP-TV equation, it is just one piece of the puzzle that also includes software, hardware, network upgrades, programming and back-office billing and provisioning systems. Until all the pieces come together and carriers can provide a fully-baked service to 100s of thousands of customers, IP-TV will not be ready for prime-time. The problem is the longer carriers wait to get into the TV business, the bigger advantage the cablecos enjoy.
Addendum: It was rightly pointed out to me that many carriers are already offering “Telco TV”, including Manitoba Telecom Services, Aliant and Sasktel. None of these carriers use Microsoft software.

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