Mediaroom is Microsoft's official IPTV streaming option and it provides a lot of media ability--in fact Mediaroom 2.0 was just announced at CES and offers "...whole-home digital video recording, on-demand capabilities, access to both operator-hosted content and Internet TV, and interactive applications.". It's like AT&T's U-verse but better.
As Microsoft slowly but steadily continues to merge all of their properties into one (Xbox 360, Mediaroom, Windows Phone 7, Zune, SkyDrive, Office, LIVE services, etc.) it only makes sense that they would be working on a way to take Mediaroom 2.x and integrate on Windows Phone 7 in some official capacity. Indeed, according to Mary Jo Foley at ZDNet, that is what project 'Rome' is all about.
Supposedly Roz Ho, who worked on "Project Pink" aka KIN is involved on the Mediaroom/Rome project which looks to bring all of Microsoft's media capabilities into one offering: Xbox 360, Mediacenter PC, Windows Phone, etc. hence the name 'Rome' as all roads lead to it.
No word on planned release time frame, but we're thinking that second big update aka 'Mango', later this year, may be a good time.