When the game box is the set-top box

Interesting week for announcing new telecommunications toys.

Apple announced Apple TV and iPhone at MacWorld. Microsoft announced xBox Video, among other technologies at CES.

Although many have anticipated Microsoft’s announcement about the evolution of its Xbox into a set-top box, there are far reaching implications beyond Apple and Microsoft simplifying the wiring of our living rooms.

When the game box becomes the digital TV tuner and the personal video recorder and video drivers for living room monitors, how far a leap is it for users to have these same capabilities on each desktop? Personal computers become personal devices – simple appliances at the end of an IP stream. For this, Microsoft and HP released the home server – an awfully powerful home networking appliance.

Modules, such as iPods, would snap in to allow us to take some of the content on the road. The network allows me to decide if I want to watch a program in a corner window on my computer as I do the rest of my homework or move downstairs to watch the game or movie on the big screen with friends.

You can watch Bill Gates keynote address at CES. The home server announcement is at the 31 minute mark. As an aside, it appears that Xbox Video, presented around the 50 minute mark of Gates’ address, use a GUI similar to that of The Venice Project, as does Apple TV. IPTV is presented around the 52 minute mark of the Gates address and notably, Bell Canada is listed among the carriers that Microsoft is working with.

Think about the implications on residential bandwidth requirements. Any PC, actually every PC, and every TV becomes a full multi-media appliance. My TVs get XBox, my PCs run additional software. All monitors can run all the applications, whether we are looking at PCs or TVs.

Which telcos are best prepared?

Microsoft is working with AT&T not Verizon which begs the question of whether Verizon’s FiOS approach is required to deliver sufficient bandwidth to the home. Apple has selected Cingular (now wholly owned by AT&T) for its iPhone.

Are cablecos positioned appropriately to compete with their own interactive services and what is the role of Microsoft in their set-top future?

Consumer services and IPTV will be topics of discussion at The 2007 Canadian Telecom Summit in June. AT&T; will once again host the cocktail reception at The Canadian Telecom Summit on June 11.

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