To: BillyG who wrote (45423 ) 9/26/1999 11:22:00 AM From: John Rieman Respond to of 50808
Big settop box order this week......................broadcastingcable.com BIG ORDER IN THE WORKS FOR SET-TOPS Rumors are swirling that a large cable operator will announce a substantial order for digital set-top boxes and cable modems, perhaps as soon as this week. Speculation centers on AT&T Broadband & Internet Services being the buyer, with General Instrument and Motorola as the suppliers. Few details were available at press time, and the companies declined to comment. However, sources familiar with the situation said the digital set-top order could be somewhere between 1 million and 3 million and the cable modem between 500,000 and 1 million. Such an order would hardly be surprising, given that AT&T BIS has already ordered 6.5 million GI digital set-tops. But it could be a blow for Scientific-Atlanta, which has been trying to write a substantial digital set-top order with AT&T, and Tele-Communications Inc. before that, for months, if not years. S-A disclosed during its fourth-quarter financial results call in August that it had shipped a small number of digital set-tops to AT&T and Charter Communications earlier this year. For AT&T to opt for the GI devices again could signal that it was unimpressed with S-A?s technology. That, along with the $11 billion Motorola-GI merger and Cablevision System?s $1 billion digital set-top order from Sony, could increase the pressure on S-A to engineer a merger so that it?s better positioned to play in what is increasingly a game of giants. While a number of companies have been mentioned as possible S-A merger candidates, the leading U.S. firm may be Lucent Technologies, which has plenty of cash plus a friendly relationship with AT&T, analysts say.