According to Bloomberg, The Swedish vendor could make the acquisition within a few weeks, a source close to the deal has said, as Ericsson looks to beef up its operation to compete with cable, satellite and web-based TV providers.
AT&T uses Microsoft’s IPTV business in its U-Verse package and has 4.5 million subscribers on the platform.
IPTV works using a packet-switched network and offers live television which can be used as video on demand. Ericsson first delved into internet TV when it acquired Tandberg Television in 2007 which was eventually rebranded to Ericsson Television in 2010.
Microsoft is believed to be refocusing its TV offering through its Xbox games console.
Ericsson and Microsoft declined to comment on the deal.
