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TELECOMMUNICATIONS : IBM in Talks to Link With Major Cable TV Operators

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From Associated Press

IBM is discussing linkups with the nation’s largest cable TV operators as part of the computer maker’s plan to provide two-way television services, industry executives close to the talks said Friday.

IBM is in discussions with Tele-Communications Inc., the nation’s biggest cable system operator, Continental Cablevision Inc., the third largest, and Viacom International Inc., another major operator, the executives said, speaking on condition of anonymity.

As previously reported, IBM is negotiating with Time Warner Inc., the nation’s second-largest cable system operator, about such a linkup.

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International Business Machines Corp. wants to establish a nationwide network to send “interactive” programming to televisions in homes and offices via cable TV.

Because of the fractured nature of the cable industry, IBM will need cooperation from most of the major cable operators to bring the scheme about. The Chicago area, example, is served by at least five cable systems with different owners.

But bringing the cable industry together may be a daunting task. The companies have a history of animosity brought on in part by their early competition for franchise awards.

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An IBM spokesman, David Harrah, said the computer company is “pursing and being pursued by most of the people in the business,” but he declined to identify the companies involved.

Tele-Communications, or TCI, confirmed that it has had talks with IBM, but declined to give details. “We are certainly interested in what they have to say on a range of different subjects,” TCI spokesman Bob Thompson said.

Spokesmen for Continental Cablevision and Viacom said they had no comment.

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