Under the agreement, Telekom will use Microsoft Internet Protocol Television software to deliver TV on the network.

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In the children's room next door, Microsoft shows off Internet Protocol television, or IPTV -- currently being developed in conjunction with Alcatel.

CNN: Home of future happening now

Details are a little hazy at the moment, but apparently Dean Takahashi over at San Jose Mercury News posted and then quickly pulled a post from his blog about how Robbie Bach and Bill Gates were going to announce that the Xbox 360 will soon be able to double as a set-top box for Internet Protocol Television.

ENGADGET: Xbox 360 getting IPTV?