Microsoft Corp and Compaq Computer Corp’s combined buy of a 20% stake in Time Warner Inc’s and US West Media Group Inc’s internet access over cable venture Roadrunner (CI No 3,432) has shown more skill than Microsoft’s previous maneuverings with the cable industry. In April last year the software giant shelled out $1bn to Comcast Corp in a move that was designed to re-energize the cable industry. Six months later Microsoft and Comcast were feuding over set top box standardization. This time round however, Microsoft has invested only a quarter of the money, $215m, but taken control of the technical decisions made by Roadrunner, which was formed as a merger between US West Media Group Inc’s Media One internet service and Time Warner Inc’s Roadrunner service. Microsoft and Compaq will have control over the technical committee that makes equipment and strategic choices in the network, with a 50% vote, though a Roadrunner spokesperson was unable to name who would control decisions in the event of a tie. The CableLabs consortium controls the standardization of set top boxes and cable technologies. Compaq wants to make its PCs internet-ready and having a service provider along with the hardware is essential, while Microsoft wants to expand NT’s reach into high end communications applications. Both companies have also made big commitments to networking, Microsoft in NT 5.0, and Compaq claims it will be world number three networking vendor by January 2001. In addition, both companies will get to use RoadRunner as a testbed to develop and trial new technologies. The high speed internet access venture controlled by Tele Communications International Inc, @Home Networks Inc, is also involved with Microsoft, and is working to resolve some of the technical problems in the remote management of NT says @Home.
