AT&T enters TV market

[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
AT&T (formerly SBC) has quietly entered the TV market with the launch of its new Internet-based service in Texas. The company, which has been developing its TV network based on Internet Protocol technology for more than a year, is offering the service to a limited number of customers in San Antonio, where the company is headquartered. In this initial launch, AT&T is offering 200 channels, including HBO, MTV, ESPN, Discovery Channel and A&E, along with all three major broadcast networks. It is also offering several hours of on-demand programming. The company has built its network using IP technology, which will allow it to offer viewers much more interaction than typical TV viewing over today's cable networks. But in this initial release of the service, many of the features aren't available. AT&T is extending fiber only to nodes close to homes. And from the nodes, the carrier will use the existing copper infrastructure to deliver service. Because it has limited bandwidth to devote to its video service, AT&T is delivering it using IP technology. Even though AT&T's approach costs about half that of what Verizon is spending, AT&T's network is riskier from a technology perspective because it uses new and evolving technology. But experts agree that eventually all TV networks will use IP to provide more interactive content, which means all eyes will be on AT&T as it expands its service later this year.
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