IBM, TCI Near Pact on a Cable Data Network

NEW YORK — IBM is near agreement with Tele-Communications Inc., the nation’s largest cable TV operator, to form a two-way information delivery system serving homes and businesses, industry executives said Monday.

The computer giant is also continuing talks with Time Warner Inc. about that company joining the information system, but one executive said those are not moving as quickly as the negotiations with Tele-Communications, or TCI.

Sources said IBM also is in talks with Walt Disney Co. and Paramount Communications Inc. about those entertainment companies providing content, such as movies and TV shows, for the system.

The proposed system would use beefed-up cable TV lines to deliver “movies on demand,” interactive shopping, educational programs, video phone calls and other services.

International Business Machines Corp. believes that the digital delivery system could be a major factor in what experts predict will be a convergence of computers, communications and consumer electronics.

IBM has proposed investing $500 million in a Time Warner subsidiary in exchange for Time Warner agreeing to participate in the cable plan, sources said earlier this year.

Time Warner, which owns the nation’s second largest cable system, has been seeking the investment to help pay down its huge debt. The IBM cable venture would give the media giant a new outlet for its magazines, TV shows and films.

One executive close to the talks said Time Warner has been reluctant to commit as much of its money to the cable venture as IBM is seeking. The amount could not be determined.

Another source familiar with the talks, however, said that Time Warner is concerned not so much about the total amount of money but how much is invested up front. That source described the talks as proceeding as quickly as could be expected given the amounts of money being discussed.