THE deal struck between BT and Microsoft, signed off last week, will open up the world of minority interests to a broadcast audience, and fulfil a long-held aim of the telecoms giant.
Microsoft will develop the underlying technology allowing BT to run television services over its broadband internet network, giving it a firmer footing in the broadcasting sector.
Aside from the opportunity to re-run episodes of mass audience fav
ourites, it is likely to provide exposure to interests and events that would not normally be seen on screen, or get limited broadcast opportunities - such as Scottish club rugby; or even local church services.
For BT, the deal is the latest development in its long-planned move into broadcasting, spurred on by chairman Sir Christopher Bland, who is a former chairman of the BBC and London Weekend Television.
"What we're not going to do is standard broadcast television," explains Ian Livingston, the chief executive of BT's retail division, who will be responsible for selling the idea to the public.
"Putting that over wires is a bit like me putting air in a bottle and charging you, when you can get it free.
"What we will do is combine elements of broadcast TV - video on demand, and catch-up TV. Let's say I missed EastEnders a couple of days ago - I would be able to replay it.
"It's not just films, it's archives of TV series. You might be able to go and watch the whole first series of The West Wing or Little Britain. It would be used for interactive TV as an alternative to text messaging votes for things - or just to do a quiz show online.
"The extra element is that you can use this for minority stuff you wouldn't necessarily broadcast, but for which there are thousands of people interested. An example might be Scottish club rugby - it's that sort of thing that we could do.
"There might be thousands interested, but not hundreds of thousands; or a football match like Telford against Nantwich - a game that's not going to attract a big crowd but in which there will be interest.
Livingston added: "And it's not just in the UK. When you do it over the web it can be accessed globally."
BT already broadcasts Scottish club rugby matches over the internet as part of its sponsorship deal with the SRU. The big difference with the service being introduced on the back of the Microsoft deal is that the pictures will be coming into the TV rather than the computer.
A trial of the service will be launched early next year with a full commercial offering by the summer. It will work through a set-top box similar to that provided by BSkyB, Freeview or the cable companies.
It will have the same programming as Freeview, plus the ability to take on these extra services. But rather than being hooked to a satellite dish, plugged into a cable network or received through an aerial, the pictures will come through a broadband internet link.
Livingston says that as an internet-based service, it could be used to broadcast even tiny events on a one-off contract basis. BT has previously had requests from churches that want to broadcast their services over the internet, or schools that want to transmit their plays or awards ceremonies. Small, one-off projects like this could be justified.
BT's broadband services now reach 98% of the UK population. In Scotland, Livingston adds, it will reach 100% "or as near as damn it" by the end of this year.
From a corporate perspective, BT will be pitching itself head-to-head with the likes of NTL and Telewest in offering the "triple play" of phone, internet and TV in one package - a deal that is to be matched by France Telecom and Orange later this year. Telewest last week launched a trial of its video-on-demand service in Gloucestershire, supported by content from the BBC.
BT already does a lot of work with outside broadcasts for TV companies, so Livingston sees the move as a "logical extension" of its existing services.
Moreover, it is a further indication of the type of 'converged' services he believes are the future - similar to its newly-launched Fusion product, the mobile phone that offers landline prices in the home.
"This is a great use of broadband," says Livingston. "It's broadband coming into your home with a load of things hanging off it.
"Broadband today is all about faster internet access, which is great, but it can do a whole lot more. The phone can run over broadband, the TV service can run over broadband, you could have things like a home monitoring system running over broadband."
