BellSouth to Test Internet-Based TV Over Next Summer

By DIONNE SEARCEY
Staff Reporter of THE WALL STREET JOURNAL

December 7, 2005; Page B2

http://online.wsj.com/article/SB113391305686715620.html?mod=technology_main_whats_news


BellSouth Corp. will conduct a market test of an Internet-based television 
service next summer, a sign that the phone company is getting closer to 
rolling out video.

The Atlanta company will offer the television service to 1,000 consumers in 
its hometown next year, Mark Feidler, president and chief operating 
officer, told investors at a New York conference yesterday. He stressed 
BellSouth hasn't made a decision to launch the television service commercially.

"We still have questions about the economics," he said.

The Bells see video service as helping them compete with the cable 
industry, which has been offering Internet-based phone services that are 
less expensive than traditional phone service. Cable companies provide 
phone service to about 4.5 million households, estimates Leichtman Research.

BellSouth has lagged behind rivals in offering a homegrown video service. 
Verizon Communications Inc. has rolled out a fiber-based television service 
in a handful of markets, and AT&T Inc. is planning a "controlled launch" of 
its Internet-based television to a few hundred homes in its San Antonio 
hometown.

BellSouth is using Microsoft Corp. software in television service tests 
with a handful of BellSouth employees. A spokesman said it would likely use 
the same software for its expanded trial.

Earlier this year, other telephone companies testing that software 
experienced problems, such as getting digital video recorders to work. 
Verizon opted to use roughly the same technology that cable companies use, 
for now, because it decided that Internet technology wasn't fully ready. 
AT&T executives have said the software is meeting all of its targets.


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George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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