SBC chooses Microsoft for TV service

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Wednesday, Nov. 17, 2004 | 11:18 a.m.

BLOOMBERG NEWS

SBC Communications Inc., the second- largest regional-phone carrier, selected Microsoft Corp. to provide the software for a television-over-Internet service.

The agreement is valued at more than $400 million over 10 years, San Antonio-based SBC said in a statement. Field tests will begin next year.

Microsoft has tested the software with Bell Canada and Reliance Telecom Private Ltd. and spent about $20 billion working on products for TV broadcasting, the New York Times reported earlier.

SBC is building a fiber-optic network to offer video and high-speed Internet access to combat a threat from cable television and other wireless providers.

Shares of SBC fell 25 cents to $26.13 in New York Stock Exchange composite trading yesterday. Redmond, Wash.-based Microsoft fell 27 cents to $27.12 in Nasdaq Stock Market composite trading.

Verizon Communications Inc. is the largest U.S. phone company.