Ever wondered how TV over IP works? As AT&T continues to build out its fiber network, IPTV will become an alternative to traditional cable and satellite delivery methods.

IPTV has the potential to deliver more interactivity than cable. An all-IP solution is switched digital by nature, does not depend on shared bandwidth, and uses well-known Internet technology, which should make for some interesting applications. Expect to see caller ID information displayed on the screen when your phone rings, for instance, or alerts when you receive new e-mail. Because IPTV does not require expensive tuners, multiple picture-in-picture applications will become a reality, and DVRs will be able to record multiple shows at once without upping the cost of the unit (the main constraint will be bandwidth). An interactive program guide, pay-per-view functionality, and video on demand will all be standard features, and channel changes should be much quicker.

Ars Technica presents a introduction to IPTV technology.