Time Warner Plans to Offer Juno Net Service Over Its Cable System

Several days after facing scrutiny from regulators for its planned merger with America Online Inc., Time Warner Inc. has made its first deal to allow an independent Internet service provider access to its cable system.

Time Warner Cable is set to announce today a preliminary agreement with Juno Online Services Inc. to offer high-speed Net service to cable customers, the companies said.

New York-based Time Warner’s promise to open its cable system to competing Internet service providers is being carefully monitored by regulators, and the issue was highlighted Thursday during Federal Communications Commission hearings on the Time Warner-AOL merger. The merger has been criticized by Walt Disney Co., NBC and consumer groups, who fear that it could result in an unfair concentration of power.

“This groundbreaking agreement underscores Time Warner Cable’s commitment to offer its cable customers a choice of Internet service providers,” said Glenn Britt, president of Time Warner Cable. He said the company would try to sign deals with other ISPs.

At Thursday’s regulatory hearings, FCC Chairman William E. Kennard challenged AOL Chairman Steve Case and Time Warner chief Gerald Levin to offer details about when the cable systems would begin carrying other Internet providers.

Levin said the company was working to open access by restructuring an exclusive agreement with Road Runner, a joint venture between Time Warner and AT&T;, and the only ISP currently available to Time Warner cable subscribers. Levin said the company is conducting technical trials of how such a system would operate.

Financial terms of the Juno pact were not expected to be disclosed today.

Time Warner Cable has more than 12 million customers nationwide. New York-based Juno offers free and paid Internet access. It had 3 million active subscribers in March, making it the third-largest ISP after AOL and EarthLink.