CNet reports that Siemens is looking to round out its IPTV offering as it gears up to compete with Microsoft in the IPTV market. One of the primary signs indicating Siemens interest is the acquisition of Myrio in April. Myrio offers service provider and content-management software and software for the set-top boxes. Yet even with the purchase of Myrio, Siemens is still lacking some software pieces to complete the offering.

The article speculates on whether Siemens could break into the United States and compete with Microsoft. "Breaking into big North American carriers is going to be difficult for Siemens," says Adi Kishore, an analyst with The Yankee Group. "But there is a whole host of phone companies that are smaller, and an increasing number of them are deploying Myrio. Siemens is well positioned in that market."

In addition to Siemens advances, Microsoft lost some footing when Swisscom postponed their 2005 launch of IPTV service. According to officials, the service is not yet ready for prime-time. "The commercial launch will not be possible in the second half of 2005 as originally planned, as it has become apparent that the technology currently available is not yet suitable for serial delivery, in particular since the set-top box has no internal hard disk and only one television channel is available," Swisscom said in a prepared statement on Thursday.

This opens the door for Siemens to enter the arena. "It's Microsoft's game to lose," says Kishore. "It would be difficult for Siemens to break into the North American market, but if Microsoft really screws up, it could allow someone else in the door." With recent news of SBC Communications close to announcing delays with its Project Lightspeed rollout across the United States, this could be just that opportunity.