PAC TEL WILL SKIP TEST PHASE, GO DIRECTLY TO ROLLOUT; A NETWORK OF NETWORKS; A CHEESY INTERNET IDEA; QVC TARGETS PEOPLE WHO READ 'PEOPLE'; OTHER NEWS

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Pacific Telesis Group, San Francisco, said it will move ahead with plans to build and deploy an interactive video network in California, skipping a scheduled test phase. The decision was spurred by advances in technology and the likelihood the Federal Communications Commission will approve Pac Tel's plan to offer video services. Instead of an 18-to-24-month test of consumer video-on-demand services originally scheduled to begin late this year in Milpitas, Calif., Pacific Telesis Video Services now expects to begin the commercial rollout of its interactive TV service in various California locations next spring.

CBS unveiled a range of new interactive features it will offer via online service Prodigy, including sponsored promotions from marketers such as AT&T, Ford Motor Co., General Motors Corp., Johnson & Johnson, Visa USA and Walt Disney World. CBS also said its online store on Prodigy, selling such items as David Letterman shirts and "Murphy Brown" caps, has logged more than 2,000 orders since opening July 18. NBC, meanwhile, operator of NBC Online, is creating areas on America Online for subscribers to interact with local affiliates.

PepsiCo.'s Pizza Hut has begun testing home delivery through the Internet in Santa Cruz, California. Accessible through the World Wide Web, the "PizzaNet" system provides product descriptions, prices orders and routes them to the proper delivery area. Pizza Hut will expand the program based on the results of a 90-day test.

QVC broke a weekly print campaign in People last week promoting its nightly "Today's Special Value" segment. Ads created in-house profile satisfied customers using the tagline, "Don't miss a thing." Newspaper and radio support in some markets.

SCTT Interactive's Interactive Index, tracking the aggregate stock performance of 65 new-media companies, closed at a record 102.58 on Aug. 17, up from 101.71 on Aug. 10. ... Time Warner Interactive named Ralph Giuffre to the new post of VP-marketing for its entertainment division, from the same post at multimedia publisher Interplay Productions. ... America Online, Vienna, Va., passed the 1 million mark in subscribers, a milestone the company set its sights on earlier this year.

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