Microsoft TV steps out of lab

Though small in size and geographically remote in terms of U.S. concerns, Microsoft TV took a significant step forward today with the announcement that Swisscom/Bluewin will be the first service provider to run a commercial trial of its IP TV platform.

The 600-home trial in Zurich will use the Thomson RCA IP1001 set-top box to receive 30 channels of broadcast content. The line-up also will include five pay-TV channels and set-top box-based digital video recording capabilities.

Bluewin, which is a wholly owned subsidiary of national carrier Swisscom, completed a successful lab trial of the platform earlier this month and is targeting a larger commercial rollout by early 2005, according to Ed Graczyk, director of marketing for Microsoft TV. The initial trial, which starts in September, will run for four months.

"What it really represents is the next step in their trial process," Graczyk said. "When we announced our initial IP TV efforts in October, Swisscom was among the first partners. It’s a big step of moving from the lab into consumers’ homes."

For Microsoft TV, which also counts Bell Canada and SBC among its telco partners, the trial is the first live trial of a platform that potentially can provide a cornucopia of new video services including interactive program guides and network-based personal video recording. Initially, the company is launching an integrated PVR with the set-top largely because of non-technical constraints, Graczyk said.

"The issues [with net-based PVR] aren’t technical as much as business and legal with the content providers," he said.

Additionally, PVR capability hasn’t been in the European market nearly as long as in the U.S. and is likely to be a differentiator regardless of delivery method.