Another Microsoft IPTV Delay?

Deutsche Telekom, one of the largest incumbents in Europe has delayed its T-Home Internet Television system, due to technical problems. The service which was supposed to be launched in July 2006 is now going to be available in mid-October. “Some say we’re delaying interactive TV services but we never really said when we plan to offer them,” a DT spokesperson tells tells IDG news service. A head in the sand strategy perhaps?

The news reports on DT’s delay have been sketchy but our good friend Dave Burstein, who pens the DSL Prime e-newsletter has some further details.

“They now have halted deployment to spend six months integrating the systems, getting the bugs out of Microsoft IPTV and the network, and then adding 3 million more homes by the first quarter of 2007,” he writes in most recent missive.

British Telecom, Swisscom, Telecom Italia and DT are some of the European incumbents betting on Microsoft TV. In private chats with some senior executives, we did not get a sense that they had any confidence on current generation offering, but remained pretty high on the overall direction Microsoft is taking.