US Federal Communications Commission chairman Michael Powell said yesterday that technology and telecommunications companies are racing to develop ways to pipe television shows into consumers` homes via high-speed Internet lines.
Telephone companies like SBC Communications are trying to fend off mounting competition from cable television companies that are able to offer consumers a bundled package of products, including phone and Internet service.
"Almost every major phone company I`m aware of has an initiative under way to begin to try to plug the hole with partnerships with satellite-delivered video but what they`re really working on is broadband-delivered IP [Internet protocol] television," Powell told reporters.
"That is a major component that is moving fast," he said. Powell noted that TiVo, famous for its digital television recorders, was joining up with online DVD renter Netflix to offer movies to a home via high-speed Internet, or broadband, lines.
Powell said it was unclear what regulatory obligations such as serving the public interest would apply to television via the Internet, if any.
Separately, the FCC chief said the agency would likely resolve numerous complaints about indecency on television and radio by the end of the month because of time limits on such grievances.
In another sign that television via the Internet was gaining traction, Verizon Communications, the biggest US local telephone company, yesterday appointed a new executive, Terry Denson, formerly of Insight Communications, to manage entertainment content and marketing.
Verizon is rolling out high-capacity fibre optic lines that can carry huge loads of data, with the goal of passing one million homes by the end of this year and another two million homes in 2005.
"His experience with Insight, MTV and ABC rounds out our capability to compete powerfully over our broadband services," said Marilyn O`Connell, Verizon senior VP of broadband solutions.
Already Qwest Communications International operates a small IP television service in Arizona and the other three big local telephone companies are also ramping up their efforts.
All four carriers already resell satellite television services from DirecTV Group and EchoStar Communications as part of their voice and Internet packages.
(Additional reporting by Justin Hyde.)
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