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Telefónica Expands Microsoft Deployments

Telefónica Digital and Microsoft Corp. have inked a
multiyear agreement to deploy a new Global Video Platform (GVP) for all of
Telefónica's video entertainment services that will be based on Microsoft
technologies and Microsoft Mediaroom product suite.

The deal is notable because Telefónica is one of the world's
largest telcos, with significant operations in in 25 countries, including
Spain, Europe and Latin America, and a customer base of nearly 314 million
access points around the world.

In October, Telefónica launched an IPTV service in Chile and
earlier this month bowed an IPTV service in Brazil. Both the Vivo TV Fibra in
Brazil and Movistar IPTV in Chile relied on the new GVP platform and its
capabilities, noted Tom Gibbons, corporate vice president, operator TV business,
Microsoft in an interview.

The two companies also used the GVP platform for November
2011 Movistar Imagenio on Xbox 360 service, which provides 12 linear channels.

Telefónica is planning to deploy TV services based on the
GVP to a number of its other territories in the next few years both for
traditional pay TV services as well as over-the-top content.

The solution is designed to handle a variety of different
network types including both satellite and broadband delivery of content, which
will be important for dealing with the difference pay TV landscapes where
Telefónica operates.

The technology also allows consumers to access the services
on a range of devices both inside and outside the home that include set-top
boxes, Xbox 360, tablets and smartphones.

Gibbons also noted that the deal highlights the considerable
progress the Microsoft Mediaroom platform has made in the last 14 months. It is
now used in deployments servicing over 11 million consumer households and 22
million set-top boxes across the Americas, EMEA and APAC.