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January 2001 Issue

Pulse: AT&T Affirms MSTV Pact
By William Murray, Contributing Editor, Broadband Business Report

AT&T Broadband officials are keeping tight-lipped about any contingency plans they may have concerning their pact with Microsoft to bring advanced broadband television services to consumers, should that strategy fail or be delayed.

Some observers are beginning to wonder aloud why AT&T has not set a firm date for delivery of Microsoft’s set-top software, even as it tries to get its broadband services trials underway in the new year.

"We are committed to working with Microsoft," says Tracy Baumgartner, an AT&T spokesperson. But the company is also working with potential Microsoft competitors, such as Liberate, she adds.

Nearly echoing AT&T’s own public stance on the matter, Josh Bernoff, a principal analyst with Forrester Research, says that "AT&T could certainly pull out, but it’s unlikely."

"Microsoft invested $5 billion in AT&T concurrent with getting the contract to run MSTV on set-top boxes," Bernoff says. "Unless Microsoft is completely unable to deliver, you can count on AT&T set-top boxes running Microsoft software."

AT&T’s also working with WorldGate Communications on providing enhanced video services in select markets on existing Motorola DCT-2000 digital set-tops.

 Back to January 2001 Issue

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