AT&T Adds Two U-verse Markets

While AT&T Inc. has yet to meet its original goal of delivering its U-verse IPTV driven bundle to 15 markets by the end of last year, it has upped the count to 13, announcing Wednesday the product’s availability in parts of Milwaukee and Racine, Wis.

The news represents the first publicly disclosed new availability details in more than two months. AT&T confirmed to xchangemag.com in mid-December that it had lowered its target from 15 markets to 11 by the end of 2006.

Concerns about various aspects of the IPTV ecosystem – centering on software issues – raised questions as to AT&T’s timetable for the converged services package. The carrier cited extra time needed for software issues, but stopped short of identifying any providers.

AT&T has produced some of the software for the ecosystem as has Microsoft Corp., which provides a package that goes well beyond so-called middleware to include digital rights management (DRM) and more. Amdocs and AT&T teamed on billing and OSS packages, while Alcatel-Lucent provides systems integration offerings for the massive, multibillion dollar undertaking.

The carrier however, has said U-verse will be available to 19 million homes by the end of 2008. U-verse services are available in parts of 13 markets across five states, with plans to continue expansion into new markets throughout 2007.

AT&T said U-verse has nearly 7,000 customers today.

The telco already offers a TV service bundled with high-speed Internet called HomeZone, across its footprint. The package uses Internet from Yahoo and video from DISH Network, but lacks HD programming.

AT&T Inc. www.att.com

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