Blog Post

MS’s IPTV Strategy In Tatters

Microsoft is getting a ripping for its bungled Swisscom IPTV trial…Swisscom, the European telco, confirmed that it won’t be able to commercially launch its “Bluewin TV” IPTV service during the second half of 2005, as originally planned. “As it has become apparent that the technology currently available is not yet suitable for serial delivery, in particular since the set-top box has no internal hard disk and only one television channel is available,” said the company.

As Faultline analyzes here, Microsoft’s IPTV software is “overly complicated and impenetrable to the competition, an attempt to engineer an interface shut-out in the TV markets. It also costs something like 6 times the price of other services and necessitates the use of Windows 2003 VoD servers, something they are singularly not good at. The whole affair may be a nightmare to manage support for, driving operating costs higher.”

This delay message cannot remain unheard in the US, where Verizon and SBC have both publicly committed to using Microsoft IPTV and where Bellsouth has been rumored for the past nine months to be on the verge of choosing Microsoft as well, to create a clean sweep of the major US Telcos.

Also read: “Is Microsoft IPTV’s Weak Link?” and “Swisscom IPTV Stall Sends Shivers