CONVERGENCE WATCH

Interaxx brings new media to old medium Most of the recent fanfare over cable modems revolves around two assumptions: that the cable TV operator will have a two-way system, and that the consumer will have a personal computer. But an end-to-end, turnkey system from Miami-based Interaxx Television Network lets CATV operators use their existing infrastructures to deliver a broad array of services to American consumers at a place where they may be most comfortable-in front of their television sets.

By using Interaxx's Home Station system, cable TV operators can use their existing broadcast-based infrastructure to broaden their customer base, said Jim Davis, Interaxx president and chief executive officer.

While most multiple systems operators are implementing their two-way upgrade plans, most cable TV subscribers are still passed by the old one-way systems, putting high-speed access over cable modems out of their reach, Davis said. And, he added, only 15 million to 20 million of America's 110 million households have personal computers, narrowing the market even further.

But by using the Home Station, cable TV operators can offer access to the Internet and e-mail via consumers' TVs using telephony return, providing them an inroads to that enormous potential market. "It's clear that consumers want to have access to the Internet but don't want the requisite of buying $2000 computers to do it, and that's hindering the market," said Davis, a 25-year veteran of IBM. Operators using the Home Station system install an Interaxx digital server connected to a video modulator at the headend. Using a 6 MHz channel, Interaxx broadcasts interactive programming from its content partners to the server. The cable TV affiliate then sends that programming to the subscriber's TV via the Interaxx Machine, a hybrid analog/digital set-top box that includes 8 Mb of memory, MPEG video capability, a 4x CD-ROM that is capable of updating information, a thermal printer and a 28.8 kb/s modem for the return path.

By using a universal remote control, the subscriber can take advantage of the interactive programming provided by Interaxx's content affiliates, including home shopping from a variety of local and national merchants, educational services, sports viewing, video games and even a dating service called Club Intro. Customers can buy goods and services by inserting a "smart card," which contains credit card information, into a slot on the Interaxx Machine. The order passes through an Interaxx operations center to the merchant, and a confirmation is sent back through the center and printed on the Interaxx Machine. That same universal remote control unit can be used as a remote telephone handset, or the customer can use the TV as a speakerphone, giving the CATV operator yet another potential revenue stream, Davis said.

In addition, Interaxx announced at the recent National Cable Television Association Cable '96 show that it has received authority in the 48 contiguous states to purchase long-distance service from unspecified interexchange carriers, which it will offer to its cable TV affiliates for sale to subscribers on a per-minute basis.

For example, a CATV operator could advertise a six-hour sale for long-distance service at a per-minute rate, which consumers could purchase by using their smart cards both for billing and as a prepaid calling card, Davis said.

"Competition is wide open right now, and the more a cable operator can offer, the better off it will be," Davis said.