TCI Expands Deals with Microsoft and Sun in Advanced Digital Set-Top Boxes

Strategic Insights -

Tele-Communications, Inc. (TCI) has continued its strategy of using Microsoft Corp. and Sun Microsystems, Inc. in its advanced digital set-top boxes, signing a "definitive agreement" with Microsoft for its Windows CE-based operating system and related software. At the same time, TCI expanded its earlier agreement with Sun to specify that Sun's Personal Java software platform is the "primary programming language" on its advanced boxes. The new deals aim to provide TCI's cable TV operators with a range of software options for their digital set-tops, minimizing Microsoft's influence over the deployment of advanced digital set-tops.

Key Takeaways:

  • TCI has signed a "definitive agreement" with Microsoft for its Windows CE-based operating system and related software for use in its advanced digital set-tops.
  • The deal allows any cable TV operator using TCI's "Headend In The Sky" (HITS) service to license the same Microsoft OS and software under similar terms.
  • TCI has expanded its earlier agreement with Sun to specify that Sun's Personal Java software platform is the "primary programming language" on its advanced boxes.
  • TCI has obtained an option to license Sun's JavaOS for Consumers operating system and will support Sun's JavaTV application programming interface (API).
  • The companies have agreed that Personal Java will be the software platform for TCI's advanced boxes on which Windows CE runs.
  • TCI has worked to minimize Microsoft's influence over the deployment of advanced digital set-tops by requiring that Windows CE also run software that uses other platforms such as Personal Java.
  • Microsoft and Sun are bitter competitors in the computer industry, where they each offer network server and workstation products and various software.
  • About 12 million advanced digital set-tops are on order from General Instrument Corp. for TCI with several Internet-related and other interactive features.

Statistics:

  • TCI has signed a "definitive agreement" with Microsoft for its Windows CE-based operating system and related software.
  • The deal allows any cable TV operator using TCI's "Headend In The Sky" (HITS) service to license the same Microsoft OS and software under similar terms.
  • TCI has expanded its earlier agreement with Sun to specify that Sun's Personal Java software platform is the "primary programming language" on its advanced boxes.
  • About 12 million advanced digital set-tops are on order from General Instrument Corp. for TCI with several Internet-related and other interactive features.

Sources:

  • TR, Jan. 12
  • TR, Jan. 19
  • TR, Dec. 22, 1997