Deutsche Telekom has formed an alliance with Microsoft for the delivery of IPTV services in Germany. Deutsche Telekom will use Microsoft TV’s IPTV Edition software to offer next-generation TV, as well as complementary interactive services and a range of entertainment products over its VDSL broadband network. Microsoft has agreed to support Deutsche Telekom with joint marketing.

Microsoft is providing the same technology to AT&T, which is testing the technology in its FTTx trials in Texas.

Deutsche Telekom is currently rolling out its new, $3.7 billion VDSL broadband network, which is planned to link 10 German cities, including Berlin, by mid-year.

Forty other cities will be connected in the second phase of the roll-out, to be completed in 2008.