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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