Microsoft, BT Partner On Broadband TV

BT broadband users in the UK will have access to standard and digital television options next year.

In early 2006, Microsoft and BT will partner on delivering television content to broadband users in the UK. The beginning trial will ultimately give way to a commercial service debuting over the summer.

The BT Group has seen its long-time phone business suffer while the mobile industry erodes its customer base. To help retain and even pick up customers, the company needs to demonstrate the value of its core product.

“TV over broadband services will play an important role in BT’s triple-play offering for consumers,” said Gavin Patterson, group managing director of BT Retail, BT’s consumer arm, said in a Reuters UK report.

That triple play, where a provider offers telephone, Internet, and television services as one bundled offering, has been popular with cable companies. BT will be among several European telecom companies attempting to find new revenue streams in the marketplace.

BT has been working to upgrade its network, in order to take advantage of the opportunities presented by broadband and TV services like digital video recording and video on demand.

A benefit of working with Microsoft and its IPTV product, in addition to enabling those services mentioned, will be instant channel changing. Unlike existing digital systems, there is no delay when switching channels under IPTV.

David Utter is a staff writer for Murdok covering technology and business. Email him here.