Consumers to benefit from new set-top standards.

A new breed of cable TV set-top boxes that will allow consumers to receive interactive services moved a step closer to reality today.CableLabs, the industry_s research group, issued a final set of hardware specifications for the next generation of advanced set-top boxes. Development of the plans marks an important milestone for getting the boxes into retail stores by the government-mandated deadline of July 2000. Cable operators typically buy equipment from just one vendor because copyright protection technology differs between manufacturers. As a result, most cable boxes work only with one cable operator. The new specifications standardize how these devices will connect to digital video systems, allowing cable companies and consumers to choose from a variety of manufacturers regardless of who provides their cable service.Cable operators have been anxious to get the specifications completed so manufacturers such as General Instrument and Scientific Atlanta can make set-tops that run interactive applications such as video on demand, email, high-speed Internet access and new electronic program guides (EPGs. Cable companies such as AT&T_s Broadband and Internet Services division (formerly known as TCI) and Time-Warner Cable are interested in the billions of dollars in new revenue these applications could provide. A new report from Forrester Research estimates that interactive TV services will generate $11 billion in advertising, $7 billion in commerce, and $2 billion in subscription revenues by 2004. Electronic program guides alone, which will function like portals to TV content, are expected reach into 55 million homes and create $3.2 billion in advertising revenues in the next five years.Cable companies will derive another benefit: Consumers will purchase the set-tops rather than lease them from the cable operator. Eager to enter the market, AT&T has created an organization to oversee a strategy for rolling out interactive services and to handle technical work such as designing interfaces.