SBC Taps Scientific-Atlanta, Motorola for IPTV Initiative

SBC Communications Inc. said today it has chosen Scientific-Atlanta and Motorola Inc. as suppliers of IPTV set-top boxes for the carrier’s U-verse line of services.

None of the companies disclosed the deals' terms, but, notes telecom analyst Jeff Kagan, “[t]he dual contracts will keep both companies, Motorola and Scientific Atlanta, working hard to stay ahead. They are both working with SBC but they are also going to be competing. The provider with the best solutions at the best prices should win more business as SBC rolls out [its] television product.”

SBC did say the contracts give equal market opportunity to both vendors through the end of 2008. The company already is working with Scientific-Atlanta; earlier this year, it contracted with the manufacturer to provide IP video network equipment so SBC can distribute digital media content. 

The country’s second-largest local phone company says the set-top boxes being developed will be “tunerless,” which means multiple video streams can send to one device. And because the boxes will use MPEG-4 or VC-1 compression technology, the DVRs should store content twice as efficiently as other distributors’ DVRs, SBC says. The set-top boxes will operate Microsoft Corp.’s new TV IPTB Edition software.

Project Lightspeed is the SBC initiative to expand its fiber-optics network, delivering SBC U-verse TV, voice and high-speed Internet access services. It should be available for “controlled market entry,” according to SBC, late this year or early next.