Copyright 2005 U.P.I.

All Rights Reserved

June 22, 2005 Wednesday 10:45 AM EST

From Lexis Nexis

An Australian telecommunications giant has dropped consideration of Microsoft Corp.'s IP-based television technology.

Telstra Corp. had been evaluating Microsoft's Internet Protocol TV platform, the Sydney Morning News reported Wednesday.

The decision marks the second setback outside of the United States to Microsoft's IPTV marketing efforts in the last two months.

Recently, Europe's Swisscom delayed deployment of Microsoft TV by at least six months due to technical issues.