SBC to Use Microsoft for Video Services

SBC Communications said it would use Microsoft Corp. technology to launch video services over upgraded high-speed data lines.

The 10-year, $400-million deal with the second-largest U.S. telecommunications company positions Microsoft as a player on both sides of the battle between cable operators and telephone companies to provide new digital video and telephone services.

SBC and Microsoft’s Internet protocol-based TV service will include features such as customized channel lineups, video on demand, digital video recording, interactive program guides and copy protection.

SBC said last week that it would spend about $5 billion in the next three years to build upgraded high-speed connections in its 13-state service area, including California, that would offer video, voice and Internet services.