InformationWeek

As part of its EcoSystem for Media initiative, the carrier is expanding and enhancing its network infrastructure to eventually enable it to stream media to 10 million simultaneous Internet users. The service is slated to be available in the first quarter of 2001.

In addition to the basic streaming service, AT&T will provide production and content-creation facilities and professional services through its Solutions outsourcing unit. The telecom will compete with lesser-known but more-established streaming media providers such as Akamai Technologies Inc. and Digital Island Inc.

AT&T's plan to offer streaming media services will help legitimize the evolving market, but its offering differs from available services in only one key way, says Jilani Zeribi, a principal analyst with consulting firm Current Analysis: "What AT&T brings to the table is its vast people and technical resources for providing and supporting the service."

AT&T customer CBSMarketWatch.com would benefit by sending its daily audio and video content over one pipe to a provider that streams it to the masses, rather than sending the same content to customers over separate connections. "We could save money in streaming media software licenses for our servers, get by with fewer servers, cut bandwidth costs, and offload internal production while improving performance," says Jamie Thingelstad, chief technology officer for the San Francisco company.

In other streaming media news, KPNQwest, the European network venture of U.S.-based Qwest Communications International Inc. and Dutch carrier KPN, signed a deal to deploy Inktomi Corp. equipment to offer streaming media services across KPNQwest's expanding European backbone.