I agree to a degree, (IMG:
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the biggest issues M$ are dealing with are cost and bandwidth and those issues are
enormous but come on people don't you think M$ have already discussed this? I mean really, do you think they're just now sitting down to a table and saying "well here we are with IPTV a year away, what do you think we should charge?"... "oh and will it actually work?".... and "oh what about reliable bandwidth issues?".
Of course they've thought of these things and I think M$ is smart enough to know that they won't be able to charge an arm and a leg for the service because no one would leave their current tv /isp providers (Charter, Cox, Directv, etc.).
M$ has said they will be piggybacking on AT&T's UVerse which is currently available in a very few markets (Dallas, San Antonio, Indianapolis, et. al). Go to www.uverse.att.com and look at the pricing now. $75 for basic channels and high speed internet
is competitive and $113 for all the channels they offer and 3mbps download speeds is worth it in my opinion as well (this also includes 3 receivers). I can't imagine M$ charging much more than that so it sounds like cost may already be competitive. Not to mention the fact that AT&T is providing the wireless router and set tops at no additional cost (installation is $50 if you so choose).
Now one poster mentioned local channels and the UVerse site doesn't mention those so that doesn't sound good and could be a huge barrier to any success.
So what about functionality, can they get it to work? Well M$ is letting AT&T do the heavy lifting. UVerse has been in the wild since November and M$ must like what they've seen so far. My guess is they're giving AT&T a year + to iron out the major kinks and they'll jump in when the waters a little calmer.
We also have to remember this is not necessarily about us (the geeks, nerds, techies) I think it's more about the general consumer. The one that doesn't want to spend thousands of dollars for their kids gaming system, cable, a dvd, a dvr, inernet access, etc. and M$ believes the secret to owning the living room is Convergence!!! Everything you need on one platform and if M$ delivers IPTV successfully they will have done exactly that with the 360!!!