AT&T's Interactive Television Plans Halted by Microsoft's Development Delays

AT&T Corp.'s rollout of interactive television services may be delayed due to technical issues with the necessary software developed by Microsoft Corp. The problem arises from Microsoft's slow progress in developing the software, which was expected last year to be ready for "showcase cities" by summer. This development could prompt AT&T to seek alternative suppliers for the remaining 2.5 million set-top boxes.

Key Takeaways:

• AT&T's rollout of interactive television services may be delayed due to technical issues with Microsoft's software development.
• Microsoft and AT&T had hoped to deploy interactive television in "showcase cities" by summer last year, but the trial is now expected in early 2001.
• AT&T is currently deciding how many set-top boxes to ask Microsoft to outfit, with Microsoft having a deal to supply 7.5 million boxes out of a total of 10 million.
• The remaining 2.5 million boxes are optional, and AT&T is considering seeking alternative suppliers if Microsoft's technical issues persist.
• Microsoft is facing similar technical problems with its project for United Pan-Europe Communications NV, leading the European cable company to explore software from competitors Liberate Technologies and OpenTV Corp.
• The Microsoft-AT&T deal is currently under review, with Microsoft's development delays potentially jeopardizing other parts of the agreement.

Statistics:

• 10 million: Total number of set-top boxes AT&T plans to deploy.
• 7.5 million: Number of set-top boxes Microsoft has agreed to supply.
• 2.5 million: Number of optional set-top boxes not included in Microsoft's deal with AT&T.
• Early 2001: Expected time period for Microsoft's technical trials of the software.
• Summer 2000: Original target time period for deploying interactive television in "showcase cities".

Sources:

• The Times, 2000, Copyright (C)