New York - The deployment of AT&T's Internet-based TV service, U-verse, has been slowed by problems with the Microsoft software that powers the service, The Wall Street Journal reported on Friday.

AT&T chief financial officer Rick Lindner told The Journal that the company has "decided against heavy marketing of the TV service because it doesn't want demand to increase until the problems are solved."

The U-verse service is now available in 11 markets, including San Antonio, parts of Connecticut and Bay Area cities including San Jose, Calif. The company had initially expected the service to be available in 15 markets by the end of 2006.

Despite the delays, the company says it expects U-verse to be available in 8 million homes by the end of 2007.

The Microsoft IPTV software powering AT&T's U-verse service is also being used in Europe by telecom providers including BT, Deutsche Telekom, T-Online France and Telecom Italia.

Related Links:
http://online.wsj.com/article/SB116977140774288415.html
http://tinyurl.com/3avqaw (CNET)
http://www.microsoft.com/tv/IPTVEdition.mspx
http://www.att.com/gen/press-room?pid=5838