Microsoft Sees @Home as Competition

The software behemoth is reportedly talking to leading cable providers about building its own broadband network.

There are more rumors that Bill Gates doesn't just want the interface - he wants the pipes. Today's Wall Street Journal reports that Microsoft is talking to Time Warner and US West about building a high-bandwidth cable network to compete with @Home.

Microsoft's immediate goal, obviously, would be to gain a distribution outlet for its WebTV service. At the moment, Microsoft and @Home don't compete on the same devices - WebTV currently delivers Web access to consumers on TV screens via a proprietary set-top box; @Home delivers Web access to personal computers via a cable-equipped modem.

But the potential competition is apparent, and Microsoft has (so far unsuccessfully) been seeking to have its Windows CE software and WebTV hardware adopted as a standard interface by the cable industry. In June, Microsoft invested US$1 billion in Comcast, another major cable player.

"Our goals are very simple: Sell software," Microsoft's Craig Mundie told the Journal. "Microsoft continues to invest both in research and development, products and business relationships - every way we can to encourage the deployment of these kinds of digital communication services."

An @Home executive declined to comment about the potential rivalry.

Strangely, and apparently unrelatedly, today's Journal story accompanied an announcement that @Home would distribute an @Home-branded version of Microsoft's Internet Explorer 4.0 browser to its customers.