Video services

Microsoft's IPTV Friends

8:30 AM -- Microsoft Corp. (Nasdaq: MSFT) is bringing other systems integrators to the IPTV party, but the company is insisting this isn't due to any falling out with Alcatel-Lucent (NYSE: ALU).

"As the market accelerates, it mkaes sense to get more companies involved," spokesman Jim Brady says.

Microsoft is announcing new integrator partners today: HP Inc. (NYSE: HPQ), Tech Mahindra Ltd. , and 180Squared Inc. , the startup founded by Microsoft employees. But it's AlcaLu that remains the company's only fully end-to-end integrator, and the preferred one, Brady says.

In addition to integrators, Microsoft is announcing IPTV partnerships with Agilent Technologies Inc. (NYSE: A), Harris Corp. (NYSE: HRS), and IneoQuest Technologies Inc.

Microsoft couldn't crack the Top Ten: IPTV Carriers, but the company claims 2 million subscribers are watching IPTV on Mediaroom-powered networks. AT&T Inc. (NYSE: T) is a customer, for the U-verse service, and Microsoft's recent signings include a promising Reliance Communications Ltd. (RCom) deal. Then again, Telecom Italia (TIM) reportedly looked elsewhere for its IPTV needs. (See Microsoft Seals $500M IPTV Deal, Oracle Buys Captovation, Microsoft Powers VimpelCom, and Telecom Italia Rejects Microsoft IPTV.)

— Craig Matsumoto, West Coast Editor, Light Reading

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