* Microsoft and Santa Clara-based Intel Corp....

* Microsoft and Santa Clara-based Intel Corp. said they will work together on technology for broadcasting interactive television, as both companies try to increase their presence in the home entertainment field. Microsoft said it will start the partnership by licensing Intel’s Intercast technology, which allows viewers to watch interactive shows, and include it in Windows 98, the computer operating system it’s unveiling later this year. The two are working to get into entertainment markets as the line between traditional TV and the Internet blurs. Intel and Microsoft said they hope to develop a common framework for putting Internet content into TV programming on a variety of devices, including PCs equipped with TV tuners. They will focus first on traditional analog broadcasts and later expand to digital broadcasting. Intel shares fell 6 cents to close at $72.56 on Nasdaq.