BT unveiled an agreement with Microsoft under which it plans to use the US-based software giant’s IPTV software platform to deliver television over broadband connections.
BT said it would trial its TV over broadband service early next year, with the commercial launch expected in summer 2006. The former monopoly has been increasingly dependent on areas such as broadband and services to counter its declining fixed-line business.
By offering TV over broadband, BT is moving into the so-called triple-play market for consumers where carriers offer voice calls, high-speed internet, and television over the same connection. In the UK, this has largely been the preserve of cable companies such as NTL and Telewest. Smaller operators such as Homechoice have also launched similar services.
BT backed its ambitions to compete in this market with the appointment of some heavyweight individuals. It has hired Freeview general manager Lib Charlesworth as head of sales and marketing of BT Television Services, and Karen Saunders, Sky Networks’ head of pay per view, as head of programs and acquisitions.
The combination of Microsoft’s best-in-class technology with BTs 21st-century network will result in an incredibly exciting set of next-generation entertainment and communication services available to consumers across the UK, said Gavin Patterson, group managing director of BT Retail.
The Microsoft TV platform is a family of software solutions that enables network operators to deliver high-quality video content and services to their broadband customers. It includes standard and high-definition channels, on-demand programming, digital video recording, and interactive program guides. It works across a range of set-top boxes and TV devices.
The announcement follows last week’s news that BT is entering the multi-billion music download market with a new service allowing mobile phone customers to download tracks for a small fee. The new service, BT Livetime, will be launched as a pilot with Virgin Mobile, and will enable customers to listen to over 50 radio stations over their handsets.
