RCom to invest $1bn on IPTV roll out

Reliance Communications (RCom) and Microsoft today announced a strategic partnership to provide Internet protocol television (IPTV) services whereby RCom will invest $500 million as licence fee for the software, and spend an additional $500 million in setting up the IPTV infrastructure in the country. The companies have been working on the project since 2003.

RCom has been testing IPTV in close to 20,000 households in Mumbai and Delhi. IPTV provides for two-way interactive communication. It allows consumers to watch TV while using the telephone line and broadband Internet connection.

Reliance IPTV services will be powered by Microsoft's mediaroom platform that will allow Reliance to deliver entirely new connected and personalised TV experiences for Indian consumers. This will have advance features like video on demand (VOD), digital video recording, instant channel changing and personal media sharing.

"As consumers today are becoming more sophisticated they are demanding more compelling and personalised entertainment to suit their individual needs and preferences," said Anil Dhirubhai Ambani, chairman, Reliance ADA Group.

The technology platform will allow IPTV subscribers to watch popular standard definitions content as well as high definition content.

Steve Ballmer, CEO, Microsoft Corporation, said: "Reliance is about to change the way consumers experience TV. It is the only major digital device that has been left out of the networking revolution and Microsoft and Reliance are now making the TV a first class citizen in the connected enterprise landscape."