Ericsson has been in negotiation to purchase Microsoft IPTV business unit, which is a maker of software used by phone companies for delivering television over the Internet, said Bloomberg quoting sources familiar with the matter.

Ericsson, the biggest provider of wireless networks, is aiming to provide services to phone companies that are in competition with cable, satellite and web-based media providers.

The biggest software maker, Microsoft, on the other hand, has decided to have greater focus on delivering television through its Xbox games console, a person with knowledge on the plan told Bloomberg.

In its website, Microsoft revealed that more than 40 of the leading operators in the world are offering to buy its Mediaroom IPTV.

IPTV or Internet protocol television has a technology similar to the one that powers the Internet to transmit multimedia data over cable networks and telecom.