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March 04, 2005
Microsoft, Alcatel Enter Collaboration Agreement
Microsoft has entered a global collaboration agreement for IPTV with French telecommunications equipment giant, Alcatel, whose Digital Subscriber Line Access Multiplexers (DSLAM) and other broadband and triple-play technologies are widely deployed around the world.
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Highlights from an interview with Microsoft TV's Graczyk and ITVT:
The agreement is non-exclusive. It integrates MSFT's software with Alcatel's networking products.
Microsoft says that it will also make it easier for Alcatel's existing customers to migrate to their software solution.
Alcatel has significant market share within their specialty, 70% with US telco's, and 50% worldwide.
Microsoft says they are commited to open architecture but they believe that telco's want an end-to-end solution.
The telcos are going to have to come up with a compelling reason why you'd want to switch from cable to telco TV.
Microsoft is doing what it takes to dominate IPTV from a business perspective. Remember, they signed a $400 million agreement with SBC just last fall. However, before anyone actually concedes this space to MSFT, keep in mind that not many people are actually getting their television from IPTV yet.
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