IP: Microsoft outlines role in broadband future

[David Farber <dave () farber net>]

> Date: Thu, 26 Jul 2001 14:02:32 -0700
> From: "Robert J. Berger" <rberger () ultradevices com>
>
>
> http://news.cnet.com/news/0-1004-200-6660578.html?tag=pt.excite.cinews..ne6660578
>
> Microsoft outlines role in broadband future
> By John Borland
> Staff Writer, CNET News.com
> July 24, 2001, 1:10 p.m. PT
>
> Microsoft President Rick Belluzzo outlined a vision of a high-speed
> Internet world with his company as its foundation Tuesday, in remarks
> aimed at cable industry executives.
>
> The Redmond, Wash.-based software company is betting much of its
> future on its ambitious .Net strategy, which involves moving many of
> its software products into a service mode, where customers might rent
> access to Office or subscribe to music from MSN.
>
> Because that strategy requires people to have more bandwidth than is
> reachable via simple dial-up modem connections to the Internet, the
> company has also turned into one of the biggest boosters of the
> high-speed Net, with a history of broadband investments.
>
> In remarks prepared for a speech to the Cable & Telecommunications
> Association for Marketing (CTAM) Summit Tuesday, Belluzzo said that
> virtually all of Microsoft's core products were being built in a way
> that would help further the network companies' aims of attracting new
> broadband subscribers.
>
> "Microsoft is committed to helping make the broadband experience more
> useful, fun and engaging for consumers while making broadband services
> more profitable for the cable industry," Belluzzo said in remarks
> released in advance of his speech. "The challenge is for the leaders
> from the key technology and media industries to develop the kinds of
> services that will really make a difference in people's lives and
> stimulate new business opportunities."
>
> This chicken-and-egg problem identified by Belluzzo has haunted the
> high-speed Internet business since its inception. Internet service
> providers, cable and telephone companies have launched massive
> marketing campaigns to persuade people to sign up for high-speed Net
> services. But these generally cost more than twice as much as ordinary
> dial-up Net access, and to date there has been little content online
> that has justified this extra expense.
>
> The onset of services like Napster, which allowed the downloading of
> vast arrays of music for free, did help drive some demand, analysts
> say. But now companies like MSN are hoping that more legitimate
> services, such as authorized music subscription plans or gaming
> services, can step in to fill the void left by Napster's decline.
>
> Belluzzo cited several things Microsoft is doing to help drive
> broadband demand:
>
> * Home networking is a key part of the Windows XP operating system,
> allowing a high-speed connection to the Net to be shared with
> different entertainment devices around a home.
>
> * The Xbox gaming console system will be set up with the ability to
> play games online over a fast connection.
>
> * The Microsoft TV platform lets cable companies create interactive TV
> applications that take advantage of a high-speed connection.
>
> * MSN TV, created by the merger of WebTV and MSN content, is pushing
> people toward broadband.
>
> * The Windows Media audio and video technology is being positioned as
> the basic infrastructure for music and video download and subscription
> services.
>
> Microsoft has also invested heavily in broadband companies, including
> AT&T and Comcast, hoping to help jump-start subscriber figures.
>
> Other companies, such as RealNetworks and Sun Microsystems, are
> competing with Microsoft for different slices of the broadband content
> infrastructure.
>
> At the end of the first quarter of 2001, about 7 million combined
> cable and DSL broadband lines were operating in the United States,
> according to analyst firm TeleChoice. Cable was leading with 4.8
> million subscribers, while DSL had 2.1 million subscribers, the
> company said.
>
>
> --
> Robert J. Berger
> UltraDevices, Inc.
> 257 Castro Street, Suite 223 Mt. View CA. 94041
> Voice: 408-882-4755 Fax: 408-490-2868
> Email: rberger () ultradevices com  http://www.ultradevices.com



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