The alliance is an important step for SBC, which has devoted $4 billion to the project and plans to deliver its version of IPTV to select markets as soon as this fall.
The number of global IPTV subscribers is expected to swell from about 2 million in 2004 to more than 25 million in 2008 when subscriber revenue is expected to be about $7.2 billion, according to Multimedia Research Group.
The technology has praises. A January article by PC Magazine said that IPTV's broadband-enabled TV set-top box is a "technology breakthrough" with image quality that is "indistinguishable from broadcast."
Radium Ventures CEO Charles Prast earlier this summer said that his company, formerly XTV, has sold “thousands” of its set-top boxes since it debuted in January at Internext.
"Internet protocol television is a market-changing technology that adds a new dimension of interactivity to television viewing," Prast said.
PinkTV, the adult media division of Florida company Single Cell Entertainment, also is planning to debut its service via IPTV.
Telecom analysts at RHK recently concluded that rising broadband penetration is helping online entertainment steal market share from traditional media outlets.
“Broadband connectivity has been a key driver and will gain even more significance in enabling new forms of content services through the introduction of new high-quality features that will enhance the user’s experience,” said Stephane Teral, principal author of the report.
With IPTV, the technology could someday let people program their digital video recorders through their mobile phones or laptops, even if they are traveling around the world, said Ed Graczyk, marketing director for Microsoft TV.
"We refer to it as next-generation TV,'' he said.
IPTV also allows telecommunications companies, such as SBC, to offer package services for voice, video and data.
