UPDATE 2-UPC picks Liberate after Microsoft TV delay
businessweek.com
By Jana Sanchez
AMSTERDAM, Sept 9 (Reuters) - Europe's largest cable TV
operator UPC (UPEC.AS)(UPCOY.O) said on Saturday it would use
digital TV software from Liberate Technologies (LBRT.O), after
software from its eight percent shareholder Microsoft (MSFT.O)
was delayed.
United Pan-Europe Communications NV will begin installing
software from California-based Liberate on digital TV set-top
boxes on its Vienna network, which has 480,000 customers.
Microsoft, the world's largest software company, played down
the decision by UPC to award the deal to a competitor, saying it
never bid for the contract.
UPC had previously said it would turn to other software
providers after delays in the delivery of Microsoft software
forced the cable operator to postpone the planned September
launch of its digital services in Amsterdam.
Microsoft has worked with UPC for almost two years to
develop interactive TV for UPC's network and has invested
millions into cable companies in Europe and the United States
including UPC, Britain's Telewest(TWT.L) and NTL(NTLI.O).
It also bought interactive TV pioneer WebTV in order to
develop its Windows platform for the nascent digital interactive
TV market.
Analysts expect digital TV to eventually become one of the
most important ways that consumers access content as it has the
potential to be applied to almost all television sets in the
developed world.
Digital TV software runs on a set-top box and gives users
access to e-mail, e-commerce, web browsing, video-on-demand and
other interactive functions via their TV set.
UPC Chairman Mark Schneider told analysts in August that the
Microsoft lost whatever preferential rights it had as a
shareholder by failing to deliver the software in time.
Schneider said he would force Microsoft to compete for a
planned upgrade of software on its Amsterdam network, scheduled
for next year. UPC will begin its rollout in October using a
set-top box with minimal functionality.
Microsoft has said its software will be ready for the
upgrade, but the delay has given its competitors a way in.
'Liberate and Microsoft are the most logical choices when we
migrate to full interactive capabilities in Amsterdam,' Bert
Holtkamp of UPC said on Saturday.
'UPC has turned into a 'show me' company now. They want to
make decisions based on results instead of promises,' Liberate
Chief Executive Officer Mitchell Kertzman said.
Microsoft has been under fire since early August after at
least two high-profile roll-outs of digital set top boxes
running its software have been put back because Microsoft said
the software was not ready -- those of UPC and of AT&T(T.N) in
the United States.
'Long term we want Microsoft TV to be as widely deployed as
possible on UPC's network, but that's long term. The proof is in
the pudding, not who wins in each city,' Ed Graczyk, Microsoft
director for Microsoft TV platform group told Reuters.
Microsoft says it has orders for TV software for 15 million
set-top boxes. To date, it has not deployed on any network,
other than in trials.
UPC is 51 percent owned by UnitedGlobalCom(UCOMA.O). |
