Microsoft Considers U S West Buy-In

When Microsoft Corp. agreed to invest $1 billion in Comcast Corp. four months ago, the cable television industry nervously wondered how much further the software titan might invade its turf.

Now they may find out. Microsoft, trying to speed its drive to turn cable TV into the high-speed on-ramp to the Internet, reportedly is in talks to invest up to $1 billion in U S West’s cable TV operations.

Neither Microsoft nor U S West would confirm the talks, which were reported Wednesday by The New York Times.

Several industry experts said the flurry of discussions suggests a growing recognition by Microsoft that the cable industry is one of its most important keys to the Internet’s future - and its own future software sales.

Comcast, which represents Microsoft’s biggest outside investment ever, is the No. 4 cable operator with more than 4.3 million cable subscribers. U S West is No. 3, with more than 5 million homes.

With direct investments in two of the six largest cable companies, Microsoft would be in an enviable position to convince the operators to use its software to provide Internet access via cable lines.