Reliance Inks $500mn IPTV Deal with Microsoft

Microsoft entered into a $500 million (Rs 19.7 billion) pact today with Reliance Anil D. Ambani Group (RADAG) to launch Internet Protocol Television (IPTV) and allied services in India.

The IPTV service will be launched in Mumbai and Delhi by March 2008, to be followed by other metros gradually.

"Reliance will enjoy exclusive deployment rights for the Microsoft platform in India," said RADAG chairman Anil Ambani.

Speaking on the occasion, CEO Microsoft Steve Ballmer said: "Reliance is about to change the way consumers experience television. TV is the only third digital device that has been left out of the networking revolution. Microsoft and Reliance are now making TV a 'first class citizen' in the connected entertainment landscape."

Responding to a query about the success of IPTV, Ballmer said that very soon India and the US would be the largest IPTV market in the world.

Ambani said that as Indian consumers become more sophisticated, they are demanding more compelling and personalised entertainment to suit their individual needs and preferences.

"Until now, TV has been a broadcast, 'one-size-fits-all' experience. But backed by the powerful Microsoft Mediaroom software, IPTV promises to offer subscribers more choice, control and convenience, leading to an all-round unique and more satisfying user experience at the end of the day," he pointed out.

Ballmer said that by connecting the TV to an intelligent two-way network and adding powerful software, new connected and personalised experiences shall be possible in India.

The strategic tie-up will allow Reliance to provide new, connected and personalised TV experiences in India with a host of advanced features like video-on-demand, digital video recording, instant channel changing and personal media sharing, Anil explained.

He added that IPTV subscribers will be able to watch popular standard definition content as well as high definition at the click of a button from the comfort of their homes, and enjoy a connected entertainment experience that will soon allow them to watch their favourite shows either on TV or PC.

Microsoft will power the service through Reliance's sophisticated fibre optic network, which covers 13,000 towns and 5,00,000 villages in the country.

Reliance Communications has established a pan-India, next-generation integrated (wireless and wire line) and convergent (voice, data and video) digital network that is capable of supporting top-class services across the entire information communication value chain.

The company also owns and operates the world's largest next generation Internet protocol-enabled connectivity infrastructure, comprising over 1,65,000 km of fibre optic cable systems in India, the US, Europe, Middle East and Asia Pacific.

Ambani also said that Reliance would soon launch direct-to-home (DTH) services in the country in the next few months. There are currently 100 million TV homes in India, he pointed out.

Also present on the occasion were Ravi Venkatesan, chairman, Microsoft India, and Prakash Bajpai, president, Reliance Communications.

The companies would also co-operate on rural broadband, mobile telephony, gaming, and entertainment in the Indian market.