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Technology Stocks : Intel Corporation (INTC)
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To: Road Walker who wrote (42572)12/17/1997 4:57:00 PM
From: greenspirit  Read Replies (1) of 186894
 
John, article...Intel Proposes Low-Cost Way to Let PCs Display Digital TV..

December 17, 1997

Computer Retail Week via Individual Inc. : Sunnyvale, Calif.-Intel is proposing a low-cost solution to enable digital television reception in home PCs.

The technology, which was demonstrated to a group of journalists here earlier this month, uses an algorithm-or small software routine-to convert high- resolution DTV broadcasts into standard PC monitor format. The algorithm, developed by Hitachi, should be available in a DTV decoder board by mid-1998, said Tom Galvin, Intel's director of market development for television and broadband content.

The algorithm is important to the PC market because current high-definition DTV broadcasts can't be displayed on an SVGA monitor. Allowing PCs access to DTV broadcasts could lead to new products, such as DTV set-top boxes and PC/TV products, at today's standard prices. TVs that can receive high-definition broadcasts will probably cost $3,000 to $5,000 when they ship in mid-1998, retailers said.

The algorithm is important to Intel because it has developed DTV decoder board and digital cable set-top box prototypes. The company also is reportedly working with consumer electronics manufacturers to provide chipsets for digital TV and set-top boxes. Intel declined to name any partners.

When the first DTV broadcasts begin in late 1998, broadcasters can send the signals in any one of 18 formats set forth by a standards group called the Advanced Television System Committee. Intel, Microsoft, Compaq and Lucent Technologies have lobbied broadcasters to start sending signals at the low end of those formats, and then scale up over time.

This would allow PCs, set-top boxes and low-end DTV sets to receive DTV signals. It would also leave room in the DTV spectrum for additional broadcast space, allowing broadcasters to send video along with data services, such as high-speed Internet access or enhanced TV, a combination of video and data in one signal.

Broadcasters didn't initially warm up to that proposal. Many still haven't released their plans, but it appears they will use a combination of HDTV for prime time and lower-resolution broadcasts during other times.

Intel's move left Microsoft, Compaq and Lucent-the so-called DTV Team- dismayed, according to industry sources. But, Galvin said, "Our stance on digital broadcasts changed over time from the original phased approach of the DTV Team. We didn't want to dictate what was right for the market...This technology allows more flexibility in very low-cost implementation."

A software-based solution for DTV is less costly than a decoder chip. Although Hitachi, which will market the algorithm, has not yet set its price, Galvin said typical licensing fees for algorithms in volume are $10 to $30. The DTV decoder board, which receives and decodes the digital TV signal, will initially cost PC manufacturers about $200 per piece, but will quickly drop to about $100 when volume production is achieved, probably in 1999, Galvin said.
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Regards, Michael

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