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To: DiViT who wrote (28943)	1/29/1998 9:13:00 PM
From: John Rieman	Respond to of 50808

WebTV satellite. Phone hook-up required............................. directmagazine.com THURSDAY, JANUARY 29, 1998 SPECIAL UPDATE: GATES SAYS WEB TV HEADED FOR SATELLITE *Microsoft chairman Bill Gates revealed yesterday that his company soon plans to introduce a new version of its WebTV set-top box for satellite TV. Gates did not say which satellite company would offer WebTV, but "Dishing It Out" reported last Friday that DIRECTV is negotiating with Microsoft to provide WebTV service for DSS owners. WebTV, which is owned by Microsoft, provides Internet access through your television. Gates made his remarks Wednesday before the NationsBanc Montgomery Securities Technology Conference. He said the new WebTV boxes will connect users to high-speed DSL telecommunications lines and satellite data feeds. "You will see a WebTV box that has DSL in the coming year. You will see WebTV with cable. You will see a WebTV box with satellite," Gates told the conference. The high-speed DSL line can be incorporated using standard phone lines, a huge advantage for DSS. The majority of DSS owners already connect a phone line to the back of their DSS receivers. Yesterday's news cast further doubt that DIRECTV Interactive will ever see the light of day. DIRECTV and Microsoft announced two years ago that it would launch DIRECTV Interactive, which was designed to transmit all DSS channels as well as selected Internet sites to a single PC. However, not long after the announcement, DIRECTV and Microsoft officials began butting heads over issues such as timing and platforms, according to sources. Microsoft wanted to wait until its new Windows 98 software was ready, while DIRECTV wanted to launch the product as soon as possible. Several launch dates for the service passed while the officials attempted to resolve the differences. Now, sources say the two companies are discussing a new plan that would integrate Web TV's technology in a DSS receiver. Check in daily with "Dishing It Out" for updates on this breaking story and other DSS news.