Some conditions that the Federal Communications Commission
attached to the merger of America Online and Time Warner:
Internet Access
The FCC built on conditions already imposed by
antitrust regulators requiring Time Warner to offer on its
high-speed cable lines Internet providers other than AOL. That
means subscribers to Time Warner's superfast Web service could
select an Internet provider besides AOL, such as EarthLink or Juno
Online Services.
The FCC determined that consumers should be allowed to see their
selected Internet provider as their first screen when they log on
to their computers. That prohibits AOL from making its service the
first screen and requiring consumers to open another link to get to
their preferred provider.
The commission also required that AOL rivals carried on Time
Warner's high-speed lines be allowed to directly bill their
customers.
Instant Messaging
The FCC required the combined company to
make AOL's popular instant messaging service work with competing
services. But the condition does not apply to the real-time text
messages that millions of consumers currently use. Instead, it
would only apply once AOL Time Warner begins offering the next
generation of instant messaging services over Time Warner's
high-speed cable lines. This could include, for example, consumers
being able to video conference each other or send streaming video
clips instantly.
Before AOL Time Warner can offer such advanced services, it must
either implement an industrywide standard to make different
services communicate with each other or enter contracts to show its
system can operate with at least three rivals within six months.
This would mean that consumers using advanced instant messaging
services by an AOL rival could communicate with an AOL user,
similar to the way consumers now on different systems can exchange
e-mail.
Relationship With AT&T;
AOL Time Warner is prohibited from
entering certain types of special arrangements with AT&T;, the
nation's top cable company. The FCC addressed a major concern of
consumer groups last month when it required AT&T; to shed its 25
percent interest in Time Warner Entertainment, a subsidiary that
owns most of Time Warner's cable systems. The commission reasserted
Thursday that it had severed that link between the two big cable
players.
Interactive Television
While not imposing any specific
conditions on the companies, the FCC said it would start a
proceeding to look at whether it should intervene in the market for
the new service which allows consumers to access the Internet
from their televisions. For example, the commission will study
whether steps are needed to ensure cable companies will not steer
viewers away from interactive programming offered by rivals.