Monday, January 29, 2007

AT&T's U-verse stalled

ATT just announced that it had only 3 thousand U-verse IPTV subscribers at the end of December, 2006. This is exactly the number that it said that it had at the end of September.It expanded this service to Houston, Texas and to the San Francisco Bay Area, Indiana, and Connecticut in December. In spite of this, it added no new customers according to its fourth quarter earnings announcement.

ATT's CTO, Chris Rice, stated to the Wall Street Journal that the slow pace of its IPTV rollout was largely due to problems with its Microsoft IPTV Edition software.

On the other hand Ed Whitacre, ATT CEO, stated that its IPTV service was working better than expected and that its FTTN service would be available to 8 million homes by the end of 2007.

ATT has been running an extended technical trial for its U-Verse IPTV since it was introduced in San Antonio, Texas in June 2006. We have felt since the middle of last year that the Microsoft software was holding ATT up. That has now been confirmed.

It will be interesting to see how accurate Whitacre is. ATT said that it would install 2 million FTTN homes in 2006 and ended up installing 1.6 million. He is now saying that they will install 5.4 million this year. That is a heady rate.

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