SBC PicksMicrosoft TV For IP Television Service

SBC Communications Inc. (www.sbc.com) announced an agreement with Microsoft Corp. (Nasdaq: MSFT) to provide next-generation television services using the new Microsoft® TV Internet Protocol Television (IPTV) Edition software platform.

"Project Lightspeed and the Microsoft and SBC relationship underscore what the future holds for consumers: a virtually unlimited opportunity for innovative, cross-device services and entertainment experiences enabled by the marriage of powerful broadband networks with the magic of software," said Steve Ballmer, CEO of Microsoft.

The SBC IPTV deal with Microsoft, valued in excess of $400 million over 10 years, is the first of its kind for any U.S.-based telecommunications provider.

"Our service will change the way people experience TV. Finally, customers will watch what they want, when they want -- from a virtually unlimited and interactive content selection," said Edward E. Whitacre Jr., SBC Communications Inc. chairman and CEO.

SBC Labs has been testing an IP-based television service built on the Microsoft TV IPTV Edition platform since June 2004. SBC companies and Microsoft will begin field trials in mid 2005 and plan commercial availability of the IP-based television platform in late 2005.

In the first quarter of 2005, construction is expected to begin on the SBC Project Lightspeed, the company's initiative to deploy fiber closer to customer locations to provide new, feature-rich, IP-based services, including IP television, voice over IP (VoIP), and ultra-fast Internet access.

The new service will enable a next-generation digital video entertainment experience not previously realized in the mass market. The solution will take full advantage of the SBC expanding two-way broadband network to offer new, innovative services beyond today's existing broadcast-oriented digital TV networks.