To: E. Graphs who wrote (8463 ) 12/15/1997 3:57:00 PM From: Moonray Read Replies (1) | Respond to of 25814
More: Tele-Communications to Order 5 Mln to 10 Mln Set-Top Boxes Englewood, Colorado, Dec. 15 (Bloomberg) -- Tele- Communications Inc. plans to order 5 million to 10 million digital set-top boxes during the next few years, and expects details by today's deadline from companies that want to help make them. Intel Corp., for one, said it's vying to provide its microprocessors for the boxes that will connect cable customers to digital television and the Internet. Microsoft Corp. is already negotiating with TCI on a software contract, the Wall Street Journal reported today. Microsoft declined to comment. Microsoft, Intel, Oracle Corp. and others are rushing to develop software and parts for the boxes that are expected to make their way into more than 65 million U.S. cable homes. The devices will provide a new source of revenue for their makers while letting TCI and others offer more channels and high-speed Internet linkups to attract customers and boost sales. ''There's a palpable excitement at TCI. (TCI) is saying get us your stuff, because we're ready to go,'' said Ted Henderson, an analyst at Janco Partners. TCI Chairman John Malone said at a cable industry conference last week that TCI and other cable providers may order as many as 25 million boxes over the next several years. Analysts value the orders at about $10 billion. TCI recently sent out a 140-page request for information to the high-tech companies. TCI declined to comment on which companies it solicited and which ones responded. ''A number of responses has been received and we're very encouraged by the early interest,'' said LaRae Marsik, a TCI spokeswoman. She said TCI is on a ''fast track to review the responses.'' 1999 TCI is aiming to begin shipping the boxes that sit atop TV sets to consumers in early 1999. Analysts expect the boxes to cost TCI about $300 each. ''This is a business we want to be in,'' said Intel spokesman Tom Waldrop. ''We'll be an active player.'' Santa Clara, California-based Intel would likely supply components for the new boxes the same way it supplies computer chips for PCs, he said. The contracts also may include an investment in TCI, pricing discounts or revenue-sharing agreements, the Journal said. TCI declined to say whether it's interested in selling stakes to technology companies. ''We're looking at a lot of different scenarios. It's too early to say, but I wouldn't rule anything out,'' said Lela Cocoros, another TCI spokeswoman. Microsoft has already invested $1 billion in Comcast Corp. and has talked to other cable companies such as Cox Communications Inc. and Time Warner Inc. Oracle is vying for a piece of the market that's developing for software applications that run on the boxes. David Roux, executive vice president of Oracle's corporate development, said last month that Oracle is talking to cable operators like TCI and Time Warner about the technology necessary for the boxes. Oracle Chairman and Chief Executive Larry Ellison has said that the database software maker has no interest in investing in cable companies, although it might join up with them. Set-top box maker NextLevel Systems Inc. has already shipped 500,000 digital set-top boxes to TCI that will be used until TCI selects a vendor for the more-advanced devices. NextLevel is competing with Scientific-Atlanta Inc. and others to make the boxes that will run on other companies' software and chips. o~~~ O