Hewlett-Packard to Make Part for New High-Definition TV

Hewlett-Packard said Monday that it has signed an agreement to build encoders to broadcast high-definition television signals for AT&T; and Zenith Electronics Corp.

“We intend to be in the digital video business,” said James Olson, general manager of the H-P division that would build the encoders. “That would be a new market for H-P,” he said.

The encoders would compress television signals and convert them into digital computer language.

AT&T; and Zenith are cooperating to develop HDTV technology, which would be the biggest change in television since color sets in the 1950s. The companies are competing with several other U.S. and foreign concerns to develop what they hope will be an industry standard one day.

An advisory panel of the Federal Communications Commission is expected to meet soon to begin deciding the U.S. standard for HDTV.

The panel had been scheduled to make a recommendation this month, but some competing firms are pressing for a delay so they can improve their prototypes. In addition, there are two vacancies on the five-member FCC, which must approve any recommendations from the advisory committee.

“If the AT&T-Zenith; approach were selected, we would start production of the encoders immediately,” Olson said. If another contender is named, H-P would seek an agreement with the winner to make the encoders, he said.