Cable giant Tele-Communications International Inc has offered a $3bn contract for the supply of up to 25 million set top boxes to link American households to advanced TV and internet services, according to the Wall Street Journal. The contract will give huge exposure in the consumer market to any company that wins part of the contract. Potential hardware bidders include Microsoft Corp through its WebTV subsidiary, Intel Corp, Next Level Systems Inc, Oracle Corp’s Network Computer Inc, and Scientific-Atlanta Inc, with a number of software companies, also including Microsoft involved. But TCI is adamant that neither Microsoft Corp or Intel Corp will be given the opportunity to monopolize the cable TV set top market, and says it will buy hardware and software from multiple vendors. TCI has published a 140 page set of specifications which define the requirements of the set top and software, that has to support high speed internet access, digital TV, internet browsing, electronic programming guides, and other services such as video-on-demand. The set-tops are to be priced at under $300, including software and hardware, and ship in early 1999, says the report. Debt-laden TCI is expected to require capital investment from bidders as part of contracts, which could favor cash rich Intel and Microsoft. The deal could be the source of earlier rumors that Microsoft was planning to invest $1bn in both US West Communications (CI No 3,284) and Tele-Communications (CI No 3,269). TCI set yeaterday as the final date for the submission of technical proposals.
