November 15, 2006

AT&T/BellSouth merger makes IPTV ventures uncertain

by Brian Turner

Any marriage can be difficult – especially when it involves two of telecommunications larger companies. AT&T and Bellsouth, who only recently announced their merger, are publicly proclaiming all is well but privately feeling the bumps that come with the union.

Both companies were in the process of venturing into the IPTV market. Both companies were coming at the ventures from different directions. With the merger, the future of both IPTV ventures is unsure while the executives wonder which way they should go.

There is no freeze on the unified company entering the market, but there is also no set deadline. Like any fledgling relationship, they are feeling their way through the trials and developments.

Officials pointed out that both companies were really at the starting point for the IPTV ventures. Since nothing has been locked into place for either of them, then everything is opened to the new duo.

The new venture will feel the pressure of the merger. “We’d rather do IPTV one way rather than two,” the Vice President of product and strategy at AT&T confessed. Just like every merger and marriage before this one, a smooth transition will mean lots of compromise.

Although AT&T had planned to launch their IPTV venture by 2008 with an initial introduction to 19 million households, the future is on hold. Until there is definitive word on the merger, AT&T and Bellsouth find themselves in the IPTV limbo.

 

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