Sun Microsystems' Java Chosen by Tele-Communications to Run Digital Set-Top Boxes

Tele-Communications Inc., the nation's largest cable operator, has chosen Sun Microsystems' Java programming language to run its digital set-top boxes, a move that is seen as a setback for Microsoft's hopes of dominating the cable television industry. The arrangement, worth an undisclosed amount, means that Microsoft will not have complete control over the cable industry, as it does with the personal computer industry, where it supplies both the operating system and the programming environment. Cable executives have been wary of Microsoft's deep pockets and its goal of combining computer, Internet, and television technologies, and have fought to maintain control of their medium, which already reaches more than 65 million homes.

Key Takeaways:

• The Sun Microsystems' Java programming language has been chosen by Tele-Communications Inc. to run its digital set-top boxes, dealing a blow to Microsoft's hopes of dominating the next generation of cable television.
• The arrangement means that Microsoft will not have complete control over the cable industry, as it does with the personal computer industry.
• Tele-Communications' selection of Java assures that the new technology will be developed by several companies, including Intel, I.B.M., Oracle, and others that are vying for the right to supply software or electronics for the new boxes.
• Microsoft is still in talks with Tele-Communications about licensing its Windows CE operating system, and is considering a heavy investment in Tele-Communications' set-top box development.
• Tele-Communications' chairman, John C. Malone, has a master strategy to curb Microsoft's power by allocating different parts of the set-top box technology to competing players.
• The Sun deal is part of this strategy, and is seen as a way to reduce Microsoft's willingness to invest in the cable industry.

Statistics:

• 65 million: the number of homes already reached by the cable industry.
• 6.5-10 million: the number of digital set-top boxes that Tele-Communications plans to have in place within the next three years.
• 10: the number of companies that are vying for the right to supply software or electronics for the new set-top boxes.

Sources:

• "Sun's Java Chosen for Set-Top Boxes" by United Press International, no date mentioned.
• "Microsoft Still Hoping to Make It in Cable" by Victoria Hawthorne, no date mentioned.
• Testimony of Bruce Ravenel, senior vice president of Tele-Communications' TCI Ventures Group, no date mentioned.