SBC Selects Motorola and SA as Set-Top Suppliers for TV Service
[August 29, 2005]
SBC, a former Baby Bell that has transformed itself into a global telecommunications company, has selected Scientific-Atlanta, a leading player in the broadband STB and communications arenas, and Motorola's Broadband Communications Sector, a leading player in the set-top and interactive TV markets, to deliver Internet Protocol TV [IPTV] set-top boxes that will enable customers to access TV programming, video-on-demand, interactive applications and other advanced features that are part of its U-verse TV services.
Both vendors will develop and supply IPTV set-top boxes that will help SBC companies offer consumers more TV choice and a much-needed alternative to cable companies. The contracts, awarded by SBC Services, give equal market opportunity to both vendors and continue through the end of 2008. Project Lightspeed is the SBC initiative to expand its fiber-optics network deeper into neighborhoods to deliver SBC U-verse TV, voice and high-speed Internet access services.
The planned IPTV set-top boxes are tunerless, which allows multiple video streams to be sent to one set-top box. Additionally, because the boxes will operate next-generation compression technology - either MPEG4 or VC1- the Digital Video Recorders [DVRs] are expected to store content approximately twice as efficiently as DVRs provided by other video distributors' DVRs
The set-top boxes will operate the new Microsoft TV IPTV Edition software. SBC provided a common set of specifications to both vendors to build the set-top boxes.
In March 2005, SBC awarded a contract to Scientific-Atlanta to provide IP video network equipment that would enable SBC to acquire, process, encode, and distribute digital media content to subscribers. SBC is currently testing this video network equipment as part of an SBC technical trial. Instead of using a traditional broadcast video system, in which all content is continuously sent to every customer's home, SBC companies will use a switched IP-video distribution system. In the switched IP-video network, only the content the customer requests is provided to the customer, freeing up bandwidth to be used for other applications.
The SBC U-verse suite of services allows for increased programming choices and many new services that integrate video, broadband, voice and wireless products.
SBC is planning an initial controlled market entry in late 2005 or early 2006. The company plans to add more features and functionality, including whole-home DVR and high-definition functionality, to the SBC U-verse TV offering and enter more markets beginning in mid-2006. Both vendors continue to make progress in delivering the technology to SBC. At this time, SBC expects to use Motorola set-top boxes initially when it scales the service, with Scientific-Atlanta set-top boxes soon thereafter.
SBC Communications Inc., based in San Antonio [Texas] is a global telecommunications company with over 90 million telephone lines and 11 million wireless customers across the U.S. and telecommunications investments in 23 foreign countries. SBC subsidiaries include Ameritech, Cellular One, Nevada Bell, Pacific Bell, SBA Telecom, Southwestern Bell, and SNET. SBC provides local and long-distance phone service, wireless and paging services, data communications, high-speed Internet access and messaging, cable and satellite television, and security services; manufactures telecommunications equipment, and publishes directories.
The Motorola Broadband Communications Sector was created when General Instrument Corporation [GI] was acquired by Motorola in January 2000. Combining GI's leadership in converged voice, video, and data networks with Motorola's global reach and brand identity, the Motorola Broadband Communications Sector focuses on broadband solutions that deliver interactive television, the Internet, and telephone services over wired and wireless networks.
Motorola, Inc. is a global leader in providing integrated communications solutions and embedded electronic solutions.
The company, headquartered in Schaumburg [Illinois], has global operations. Its shares are traded on the NYSE under the symbol: MOT.
Scientific-Atlanta, Inc. is a leading supplier of digital content distribution systems, transmission networks for broadband access to the home, digital interactive set-tops and subscriber systems designed for video, high speed Internet and voice over IP [VoIP] networks, and worldwide customer service and support.
The company is headquartered in Atlanta [Georgia], with its European operations headquartered in Frankfurt [Germany] with sales and service offices in the UK and manufacturing facilities in Denmark. Scientific-Atlanta's European operations cover Europe, the Middle East and Africa with end-to-end broadband communication solutions. S-A's shares are traded on the NYSE under the symbol: SFA.
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