To: levy who wrote (25767 ) 3/30/2001 7:57:27 AM From: Carolyn Respond to of 28311 navigation.helper.realnames.com Charter plans to introduce interactive television and Internet service through set-top box system Peter Shinkle Of the Post-Dispatch In a bid to blend cable television with the Internet, Charter Communications Inc. said Thursday it will launch a new service aimed at improving the link between the two technologies. Charter, which is based in Des Peres, said it has selected Liberate Technologies Inc. of San Carlos, Calif., to develop software for an interactive television and Internet service based on the use of a set-top box, a wireless keyboard and a remote control. Charter also revealed that it already has tested the product in Charter employees' homes in the St. Louis area, and plans to extend its trial to the homes of about 200 consumers before deploying it. "We're not doing a trial for trial's sake, we're trialing to deploy," Stephen Silva, Charter's senior vice president of corporate development and technology, said in a telephone conference with industry analysts and the media. "The strategy is to get this product up and running in St. Louis and one other market by year's end," Silva said in an interview later. Jerald Kent, Charter chief executive, has vowed to deploy the company's leading technology in St. Louis first. Silva said Charter hasn't decided how much it will charge for the new service, but it has used focus groups in the St. Louis area to determine how it should function. For instance, customers can click on a remote to read e-mail on one part of the screen while they're watching a television show on the other. "They never have to leave the TV experience to check their e-mail," he said. That is a stark contrast with Worldgate, Charter's current product that fuses the Internet with cable television. With Worldgate, customers must go to a computer-style user interface to look for e-mail or do other activities on the World Wide Web, he said. About 10,000 Charter customers subscribe to Worldgate, according to Charter. In another improvement over Worldgate, the new product, which Charter has not yet named, will make it possible for consumers to view streaming media from the Internet. Worldgate does not support the protocols necessary to receive streaming music, movies or videos, Silva said. The product will have a "news" button on the remote control and the wireless keyboard, giving the consumer one-click access to news, Silva said. And the devices will enable consumers to select streaming or text news accounts. Charter is in negotiations with several local news organizations about providing the news, he said. Digeo Inc., 25 percent of which is owned by Charter, will develop other content and services for the new service. Charter said the new service will work in connection with the next generation of set-top boxes currently under development by Motorola Inc. Charter has not announced which companies will produce the remote or the wireless keyboard. Reporter Peter Shinkle: E-mail: pshinkle@post-dispatch.com