IP: AOL-TIME WARNER HAS AN AT&T RING -- from Edupage

[Dave Farber <farber () cis upenn edu>]

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)