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November 10, 2006
AT&T goal: Connect TV and the Internet
It's not TV. It's not the long-awaited Internet TV, either -- but it's close.
AT&T is rolling out new services, including Internet movie downloads, as part of its Homezone service, which combines elements of satellite television, broadband Internet and landline telephone service.
Traditional phone companies such as AT&T are preparing to change with the times and evolve into one-stop communications providers, with Internet, phone and television service. Until now, AT&T has had to rely on a partnership with satellite TV provider DISH Network to offer television programming. But AT&T eventually wants to offer its own television service akin to cable.
Homezone is the first step. A DSL customer can use the service to download movies through DSL connections to a DVR atop the TV. Customers also will be able to stream music online through Yahoo! Launchcast and schedule recordings of TV programs from any Web-connected computer.
Using Homezone, consumers will be able to browse and download about 1,000 movies through a Yahoo!-supported service called Movielink.com. AT&T plans to add more titles through Akimbo.com, which has about 12,000. The movies range from $1.99 to $4.99 and can be watched an unlimited number of times within a 24-hour period.
The next step is AT&T launching its own IPTV service, U-verse.
IPTV, short for Internet Protocol television, is a technology for delivering video and other services to the home. It uses the same fiber-optic cable as Internet data, hence the "IP" in IPTV.
Earlier this year, after AT&T won the right to negotiate video franchises statewide, the company said it would roll out IPTV to half of all AT&T subscribers in the state by late 2008.
"Homezone will prepare customers for the integration of television and the Internet," .
Everything you need for Homezone will cost about $135. That includes satellite television, wireless broadband and telephone services, plus a set-top box for the TV that's Web ready and records video.
Officials from Bright House Networks and Comcast, the largest cable providers in Central Indiana, say they are underwhelmed with Homezone -- as they were with IPTV.
"From our point of view, this is just a fancy name for a product we already have. We refer to it as a DVR (digital video recorder)," said Wayde Klein, vice president of marking and customer care at Bright House Networks, which provides cable, phone and broadband service in Central Indiana.
He pointed out that many new computers and televisions come equipped to be networked.
Meanwhile, Comcast spokesman Mark Apple touted his cable company's "triple play" of "faster" broadband, phone service and TV, including the high-definition channels Homezone doesn't offer right now.
AT&T's Williams said Homezone will be upgraded in coming months. High-definition channels also might be in the works, as well as an integration with Cingular Wireless cell phones.
"IPTV is a significant investment for us," Williams said.
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