MUMBAI: Europe's biggest telecommunications group Deutsche Telekom will use Microsoft software to power new internet-based television services it plans to offer in Germany before the end of 2006.

The tie up will see the service launched across Deutsche Telekom's VDSL network using a Microsoft IPTV platform. The companies have promised a range of entertainment products, including regular programming in standard and high-definition formats, as well as interactive TV, digital video recording and video on demand. The latter feature will allow viewers to access selected feature films, TV series or documentaries at the touch of a button.

The deal cements Microsoft's position as the leading supplier to providers of internet protocol TV, with 13 telecoms groups now installing or testing its IPTV software. It also represents a milestone for Deutsche Telekom in its bid to be one of the first telecoms groups to offer high-definition TV, voice and data services on new, ultra-fast internet lines.

Deutsche Telecom previously had been conducting a trial of the Microsoft IPTV software. The service is planned for launch in mid 2006 in 10 major German cities including Berlin, Hamburg, Cologne and Munich. Other Microsoft IPTV customers include AT&T, Telecom Italia and Swisscom.