AT&T is now offering its U-verse IPTV service in small areas of Houston, with plans to expand. Houston is AT&T's second market (San Antonio was the first). The company said a while ago that it will roll out U-verse to 15 markets by the end of 2006.

As AT&T previously announced, the U-verse TV service in Houston will include HD channels. Initially, the service will carry more than 25 HD channels, which will be free for two months and $10 per month thereafter.

U-verse TV's HD lineup also includes ESPN HD, ESPN2 HD, NFL Network HD, HBO HD, Cinemax HD, Showtime HD, The Movie Channel HD, Starz HD, Discovery HD Theater, TNT HD, Universal HD, A&E HD, HGTV HD, food network HD and National Geographic Channel HD, HDNet and HDNet Movies

I was told by Microsoft executives last week that 39 channels will be offered in HD, with that expected to rise to 80 in the future.