Despite its growing pains, telco TV appears to have good growth prospects, according to In-Stat. The research firm expects the number of subscribers will climb to 32 million by the end of 2009 from 1.6 million in 2004. More than half of these customers will be located in Asia. In-Stat's optimism is obviously based on the notion Microsoft will have figured out the bugs current plaguing its telco-TV software! On a more serious note, television is quickly becoming a strategic necessity for carriers as cablecos aggressively move into the voice business, while new entrants such as Google, Skype, Microsoft and AOL push harder in the VOIP space.With competition coming from all sides, carriers need to offer a TV service to stay competitive and, more important, retain customers. It is quickly becoming a major battleground, which explains why Microsoft is taking so much grief for its problems.