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Media Coverage: Time Warner Sets High Terms for Access
WASHINGTON, Oct 6 (Reuters) - Time Warner Inc is
requiring some Internet service providers to pay up to 75
percent of their revenue and relinquish some control of content
to gain access to its high-speed network, the Washington Post
reported on Saturday.
The Post reported that unnamed sources said the Federal
Trade Commission is examining the terms of many of the deals
proposed to smaller Internet service providers to determine if
they violate Time Warner's promise to open its high-speed cable
TV lines to competitors in the wake of its $183 billion merger
announcement with America Online Inc.
Time Warner is requiring nearly 40 Internet companies in
Texas to give up 75 percent of their subscriber fees and 25
percent of revenues from other sources such as advertising in
order to gain access to its cable TV network, according to term
sheets obtained by the Post.
In addition, the term sheets indicate Time Warner would get
approval control over the Internet service providers' home
pages and "prominent above-the-fold areas on the home page of
the service for use."
"Totally ridiculous," said Dave Robertson, vice president
and general manager of Stic.net, an Internet service provider
in San Antonio with more than 10,000 subscribers. "The bottom
line is, they don't have a desire to open their network."
Time Warner denied the charge, saying it and AOL are
committed to open access, the Post reported.
Cable networks are one way to deliver high-speed Internet
access to residential customers. Time Warner's cable network
reaches 18.8 percent of all cable customers nationwide.
((andy.sullivan@reuters.com, Washington night desk,
202-898-8322))
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