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IP: AOL-TIME WARNER HAS AN AT&T RING -- from Edupage
From: Dave Farber <farber () cis upenn edu>
Date: Sat, 22 Jan 2000 08:06:05 -0500
America Online's purchase of Time Warner will create a partnership between the online provider and AT&T, a major AOL foe in the "broadband" revolution. The two companies will both be a part of the Time Warner Entertainment (TWE) media partnership after AT&T acquires the MediaOne Group. One major disagreement between the two companies is the "open access" issue; AOL thinks cable companies should lease out their cable lines at low prices for Internet service providers, while AT&T believes that "forced access" is wrong. AOL and AT&T have publicly branded each other as monopolistic and anti-competitive. One major complication in the impending acquisitions and mergers is that AT&T owns ExciteAtHome, a high-speed Internet access service that may eventually compete with Road Runner, a partner in TWE. The Justice Department may prohibit AT&T from holding an interest in both companies, which would allow Time Warner a lot more influence in how TWE will be structured. Time Warner and AT&T have had difficulty brokering a deal that would allow AT&T to utilize Time Warner's cable lines for local phone service, an issue further complicated by AOL's involvement. (Wall Street Journal, 21 Jan 2000)
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