To: J Fieb who wrote (136 ) 12/15/1997 5:09:00 PM From: Maya Respond to of 324
More on TCI. The main criteria for selection is bolded by me.biz.yahoo.com Monday December 15, 4:47 pm Eastern Time Tele-Communications sees set-top box buys in '98 By Jeffrey Benkoe NEW YORK, Dec 15 (Reuters) - Cable TV operator Tele-Communications Inc (Nasdaq:LBTYA - news; Nasdaq:TCOMA - news) said Monday it may buy as many as 10 million state-of-the-art set-top boxes next year for itself and affiliated companies, a key step in bringing interactivity to the mass consumer market. A TCI spokeswoman said the company would make a decision on purchases during the first quarter of 1998. ''Early 1998 is when we'll make that decision and place the order,'' she said. ''We're on a very fast track to make progress in this area.'' NEW YORK, Dec 15 (Reuters) - Cable TV operator Tele-Communications Inc (Nasdaq:TCOMA - news) said Monday it may buy as many as 10 million state-of-the-art set-top boxes next year for itself and affiliated companies, a key step in bringing interactivity to the mass consumer market. A TCI spokeswoman said the company would make a decision on purchases during the first quarter of 1998. ''Early 1998 is when we'll make that decision and place the order,'' she said. ''We're on a very fast track to make progress in this area.'' TCI would not comment on a price range it was seeking per box, although industry reports have said about $300 per unit. At that price, TCI could wind up spending $3 billion, although TCI officials declined to put any value on purchase deals. TCI's decision is tied to technology included in a request for information issued by Cable Television Labs Inc, a private research and development consortium that's trying to come up with a standard for the next generation of the cable boxes, also called network computers. TCI earlier this month sent out its own commercial requests for proposal to about a dozen companies. The deadline for responding was Monday. Among the companies are Microsoft Corp (Nasdaq:MSFT - news) and Intel Corp (Nasdaq:INTC - news), ''Ten million is possible,'' a TCI spokeswoman said. ''It depends on the proposal they (companies) come back with.'' The proposals will include details on features as well as cost. ''We'll spend the next week or so reviewing the responses with various manufacturers,'' said a spokesman for Technologies Ventures Management, a division of TCI. ''Then we'll develop what our timetable is.'' TCI wants to take advantage of economies of scale. The decision on the size of the order will focus on the functionality of the boxes, as well as the timing of the delivery and the price. Among the potential features of the new boxes are: Electronic mail; interactive applications, such as seeking more information during a commercial; video on demand; and high-speed Internet browsing. A variety of companies, including some of the most powerful giants, have been talking to TCI about offering some or all of the boxes. Intel Corp (Nasdaq:INTC - news) confirmed it was talking to TCI to at least provide its microprocessors. ''We're not sure what role we play in the proposal,'' said spokesman Tom Waldrop. ''But we are in discussions with all the players who are involved in this. We think this is a very important business, and we will be pursuing this very aggressively.'' Microsoft officials were not immediately available. TCI's moves are being closely watched because as the largest cable operator in the United States, with about 14.3 million subscribers, it wields considerable infuence in the industry. Also, TCI Chairman John Malone is also chairman of Cable Labs. With the personal computer business holding at about 40 percent penetration of total U.S. households, PC makers and related technology companies are seeking new markets. A new, more sophisticated set-top box would open a large, new market.