Advertisement

AOL Says It’s Still Seeking Deal to Put its Net Service on AT&T; Cable Systems

Share
REUTERS

America Online Inc., which is seeking to acquire cable giant Time Warner Inc., said Tuesday that it is still pursuing a deal for its Internet service to be carried on rival AT&T; Corp.’s cable systems.

AOL has not reached any agreement with AT&T; and does not have a proposed business plan on the subject, the company said in response to questions from the Federal Communications Commission, which is reviewing the proposed purchase of Time Warner.

Dulles, Va.-based AOL “is presently engaged in preliminary discussions with AT&T; to determine what the terms and structure of a viable deal might be,” the company said in a filing with the FCC.

Advertisement

The world’s biggest Internet services provider also said it was reviewing and analyzing AT&T;’s planned six-month test for allowing multiple providers access and had signed a nondisclosure agreement surrounding AOL’s possible participation in the test.

A spokesman for AT&T; was not immediately available for comment.

Some critics of the AOL-Time Warner marriage have asked the FCC to see that the new company and AT&T; remain far apart to ensure competition in the cable market.

The two merging companies were asked by the FCC to describe the status of any discussions between AT&T;, AOL and Time Warner but AOL’s response was omitted from the public part of the filing.

For its part, Time Warner said discussions take place all the time with companies like AT&T; on a variety of issues, but recent talks between the two have been limited to providing phone service to cable subscribers and the Road Runner partnership.

Road Runner, a joint venture between AT&T;, Microsoft Corp., Time Warner and Compaq Computer Corp., offers high-speed Internet access through cable networks and competes with digital subscriber lines, which allow access over ordinary copper telephone lines.

AOL’s acquisition of Time Warner has come under intense scrutiny by federal regulators to determine whether the transfer of broadcast licenses is in the public interest and would not hurt competition.

Advertisement

Some companies that compete against AOL and Time Warner, cable and Internet services alike, have expressed concern about fair access to Time Warner’s cable distribution system.

AOL and Time Warner also gave the FCC more information about interactive television products, investments in other companies, instant messaging and digital subscriber lines.

The filing made Tuesday was in response to a third round of questions the agency sent to the two companies as the FCC weighs whether to allow AOL to acquire Time Warner in a deal that is now worth about $132 billion.

Advertisement