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To: howsmydrivingal who wrote (19)	8/22/2001 11:12:36 AM
From: howsmydrivingal	Read Replies (1) \| Respond to of 787

More recent news... Wednesday August 22, 9:59 am Eastern Time AT&T Signs Deal With Liberate AT&T Signs Deal With Liberate Technologies for Interactive TV Services By MAY WONG AP Technology Writer SAN CARLOS, Calif. (AP) -- In an apparent setback for Microsoft Corp. (NasdaqNM:MSFT - news), rival Liberate Technologies said Wednesday it will be the interactive television software provider for almost half of AT&T's (NYSE:T - news) 14 million cable subscribers. AT&T's wholly owned subsidiary, Headend in the Sky, has signed a multi-year deal with Liberate to jointly develop and deliver a low-cost suite of interactive TV services starting in the fourth quarter, the two companies said in a statement. The new TV features will initially include interactive games and information services, the companies said. Additional services such as video on demand, interactive advertising and e-commerce will be offered later. Until Wednesday, AT&T was undecided on which software platform to use for the service upgrades: that of Microsoft, San Carlos-based Liberate, or WorldGate Communications of Trevose, Pa. The announcement comes two months after AT&T, the nation's largest cable television provider, dealt what was seen as another blow to Microsoft, which has invested $5 billion in AT&T. The cable giant tabled plans to deploy highly advanced Microsoft-enabled cable boxes. Instead, AT&T said it would expand TV features for existing DCT-2000 set-top boxes made by Motorola Corp. On Wednesday, Liberate said its deal with the AT&T subsidiary, also known as HITS, means its software will power as many as 6 million digital set-top boxes -- a significant feat in a highly competitive market that is expected to finally beef up after years of dismal consumer interest. HITS, based in Littleton, Colo., delivers digitally compressed cable TV programming to 140 cable system operators using a satellite distribution network. According to the Carmel Group research firm, there are some 3 million interactive TV households in the United States receiving the services via cable and satellite. By 2003, the firm predicts the number will jump beyond 20 million.