Qwest has repeatedly stated that they won't be getting into the IPTV game, instead relying on "over the top" video solutions for subscribers. Of course part of the reason they haven't gotten into IPTV is because they can't afford it; unlike Verizon and AT&T, Qwest lacks the ability to cross-subsidize such a build out with wireless revenues. Another reason is they seem more interested in cleaning up company debt in preparation for a possible sale, than investing seriously in massive IPTV upgrades (or serious next-gen broadband deployment).

With Qwest's "over the top" video plans in mind, the company has decided to invest millions into set-top broadband video service ZillionTV, according to Todd Spangler over at Multichannel News. In exchange for their ten million dollar investment, Qwest will get the exclusive right to offer ZillionTV service (but only in Qwest's footprint):That lawsuit (available here for those interested) brings up a good question: why invest in ZillionTV? While the technology was overly hyped by bloggers when first announced, it has since stumbled, changed business models several times, laid off a third of its employees, suffered from launch delays, and is now being sued for management missteps and promises they allegedly couldn't keep. Is that a sound investment for a telco that can't really afford to upgrade its broadband network? We'll see. ZillionTV's latest vague launch date is sometime later this year.