Japan Wants Its Internet TV

Three years after Japan_s Internet TV efforts first arose, only to quickly fizzle, a clutch of specialized hardware and software companies is racing back into the market as the Internet boom catches fire in Japan. And the country_s TV manufacturers, desperate to maintain dominance in global television markets, appear to be taking a keen interest. TeleCruz Technology, San Jose, is strongly promoting its one-chip solution to Japanese TV makers as a low-cost way to make TV sets -- beginning with analog ones -- Internet accessible. Meanwhile, Access, Tokyo, has completed embedded browser software for satellite-based digital broadcasting, scheduled to begin in December 2000 in Japan. Though TeleCruz said it believes it can jump-start the market using analog TV, Access said OEMs would rather incorporate Internet access in digital sets. But both agree Japanese consumers are primed for interactivity as more people go online, and need a cheaper way to tap the Internet than the notoriously expensive phone lines here. Internet TV was a hot product in Japan a few years ago. Mitsubishi Electric introduced the first such set in 1996, using a browser chip set developed by Access. Other major TV makers joined the market, but the products were expensive and died a quiet death due to lackluster sales. "Japanese TV manufactures are ready to give it another try," said Bill Howe, CEO and president of TeleCruz. " Howe said the TeleCruz solution plays into the need to keep prices down: it intends to offer its TC701 chip with Japanese language software in September for $35, including memories and connectors. Since the device will replace existing TV control functions worth $10, OEMs can thus add Internet access to their TVs for $25, the company said.