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To: DiViT who wrote (24601)	10/29/1997 3:18:00 PM
From: JPM	Read Replies (1) \| Respond to of 50808

Blank post... skip it.

To: DiViT who wrote (24601)	10/29/1997 3:45:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

3rd generation DSS chips to appear next year.............................. 3rd-generation Dss Chip in 1998 Consumer Electronics Mon, Oct 27 1997 DSS could become even more commodity-driven business in 1998 with emergence of 3rd-generation chip that will lower manufacturing costs $40-$50 by combining functions such as conditional access and AC-3 audio on single IC, sources said. Sony, in alliance with Texas Instruments, and Thomson, with SGS-Thomson Microelectronics, are working on more powerful chip that eventually could drop DSS integrated receiver/decoder (IRD) manufacturing costs below $100 per receiver, sources said. Sony has told dealers it would have 3rd-generation high-end DSS IRD by year-end (TVD Sept 1 p9). However, it has declined to disclose details, and Sony executives responsible for DSS were said to be traveling in Japan and couldn't be reached for this report. High-end Sony model is said to feature return to component style from slightly smaller version currently on market, be "fully loaded," carry retail price around $600. "There is no reason that this product shouldn't eventually be costed out at the same level as a VCR," source said, noting that separate conditional-access system for IRD has $25-$35 manufacturing cost. "Is under $100 in direct manufacturing costs do-able? Yes it is." Ability to integrate features stems largely from "commonality" that exists between DSS IRD and other digital set-top boxes, CE executive said. As result, DSS box could become combined set-top device that would increase vertical resolution of interlaced DSS image, source said. However, building Internet browser into chip would require more extensive changes, including faster processor and modem, source said. Some DSS IRDs currently contain 32-bit microprocessor and 14.4 kbps modem. As manufacturers ready 3rd-generation chip, other vendors appear to be weighing DSS options. Philips is said to be closing out its Uniden-sourced first-generation IRDs at Best Buy and there's no word on 2nd-generation product. Philips spokeswoman said "there is nothing for us to say" on subject. Company took long route into DSS camp, signing on only after first agreement with Echostar collapsed. Meanwhile, Matsushita's potential deal with Primestar remains on hold pending FCC decision on latter's application to gain control of 110 degrees W orbital slot that MCI won at auction. If Matsushita signs on with Primestar, it loses manufacturer incentive program funded by DirecTV and U.S. Satellite Bcstg., making it "very difficult to compete" in DSS, CE executive said. Matsushita, which currently sources DSS from Thomson, has declined comment on potential Primestar agreement. * * * * * International Trade Commission (ITC) Law Judge Paul Luckern ruled last week that DirecTV, Hughes Network Systems, Thomson, USSB and other DSS companies didn't infringe on patents held by Personalized Media Communications (PMC). Patents cover on-screen video functions such as program guides. Luckern also rejected PMC request for injunction barring import of infringing products. While he said that PMC had "failed to establish contributory or induced infringement", he also ruled that DSS camp hadn't proved that patent was "unenforceable." Cecilia Gonzalez, attorney for PMC, wasn't available for comment. (Copyright 1997 by Warren Publishing, Inc.)