France Telecom software JV aims to rival Microsoft
PARIS, Feb 20 (Reuters) - Three top French telecoms technology groups, France Telecom (FTE.PA), Sagem Communications and Thomson (TMS.PA), on Wednesday launched a software joint venture that aims to compete with U.S. giant Microsoft (MSFT.O).
Called Soft At Home, the venture's software helps improve communications between Internet set-top boxes, television sets, phones and other electronics devices. Its ambition is to set an industry standard and licence the software to telecoms operators around the world, the companies said.
They will seek to challenge Microsoft which has made a big push in Internet Protocol-based television (IPTV) over the past two years and licensed its Mediaroom software to operators such as AT&T (T.N), BT Group (BT.L), Deutsche Telekom (DTEGn.DE) and Bell Canada (BCE_pe.TO).
France Telecom, which trades mainly under the Orange brand, declined to say how much it had invested in the venture but said its total budget would support a business of between 70 to 80 staff.
"We are aiming to develop a standard for the industry," said France Telecom Senior Executive President Georges Penalver, responsible for Orange Labs and strategic marketing.
"And our standards will respond better to the needs of telecoms operators than others (on the market)," he said, such as Microsoft's products.
The new business will be controlled by France Telecom through a 60 percent stake with the balance equally shared between Thomson and Sagem Communications, a unit spun out of French conglomerate Safran (SAF.PA) earlier this year.
The new open-source software is to be commercially launched in France in the third or fourth quarter of this year and rolled out in other countries after that.
The software's applications will range from viewing computer-stored photos on TV to answering phone calls with a remote control.
"If we do nothing, we will face a segmented market with different standards in different countries and that would be an industrial waste," Penalver said.
France Telecom is a member of the Open IPTV Forum, an initiative launched a year ago to set a single global standard for IPTV so that all systems can work together.
Members include Telecom Italia (TLIT.MI), AT&T, Siemens AG (SIEGn.DE), Sony Corp (6758.T), Samsung Electronics (005930.KS), Matsushita's Panasonic, Philips (PHG.AS) and Ericsson (ERICb.ST).
If all IPTV systems work together flawlessly, it should be easier and cheaper for consumers to buy and use IPTV systems and services such as set-top boxes and video programmes.
(Editing by Erica Billingham)
