AT&T to deliver U-Verse on existing cable network

By Our Corporate Bureau | 08 Dec 2006

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Mumbai: Top telephone and wireless service provider AT&T Inc. is upgrading its networks to deliver an internet-based video service called U-Verse to compete with cable companies. The largest provider of both local and long distance telephone services, wireless service (Cingular), and DSL internet access in the United States said it could handle an expected surge in high-speed internet and video traffic without having to build a more expensive, all-fiber network.

AT&T said it would rather optimise the use of current copper cables for launching internet-video services.

The company is also preparing to merge with BellSouth Corp. The move would help consolidate its ownership of Cingular and reinforce its position as the biggest US telecom service provider.

AT&T has agreed to distribute through its Internet TV service, U-verse, TotalVid's online special-interest videos, which cover categories ranging from dance instruction and home improvement to martial arts and gambling. Financial terms were not disclosed.

Under the deal, AT&T U-verse subscribers get access to the TotalVid library of hundreds of full-length niche videos, which are available for download and playback on a PC. AT&T will be the first to offer TotalVid content for playback on the TV.

AT&T provides subscribers with the search capabilities to find content, which is categorized based on market and user trends.

"Through our IP (internet protocol) platform, we plan to offer customers a wide selection of niche content," Richard Wellerstein, vice president of video on-demand programming at AT&T, said in a statement.

U-verse is relatively new to the market, available in only two U.S. cities. The service launched in San Antonio in June, and later in Houston. AT&T plans to make the service available in 13 more markets by the end of the year, but has yet to say where. A U-verse user group, however, reports the next launch city is scheduled to be in California, with San Diego, San Jose, Calif.; and parts of Los Angeles close to launch ready.

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