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Dean Takahashi interviewed Bill Gates for the San Jose Mercury News, and the subject of AT&T providing IPTV to it’s subscribers came up. Here is a summary of the interesting points:

•Microsoft is working on a deal with AT&T to provide services for AT&T customers based on the IPTV platform.

•AT&T wants to make its own proprietary box to provide IPTV.

•IPTV does not need a larger hard drive, and Bill Gates was careful not even to hint that a larger hard drive is in the works.

•The DVR functionality of IPTV will run on servers owned by AT&T, which means that shows will not be stored on the local hard drive.

I think that most telcos will opt for a proprietary box that they can control completely. This means that you will probably end up with a separate box for watching TV.