AOL's Internet access deal OK'd
By David Ho
Associated Press
WASHINGTON — Federal regulators approved allowing another national Internet service provider to use AOL Time Warner's high-speed cable lines yesterday, giving more options to consumers wanting to go online and allowing the company to meet government competition requirements.
Big Net Holdings Inc., based in Sterling Heights, Mich., will be allowed to compete with AOL on the cable lines nationwide, the Federal Trade Commission said.
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Big Net and AOL Time Warner did not immediately return calls seeking comment.
When the FTC approved the $106 billion merger of America Online and Time Warner more than a year ago, it required the companies to give customers in major markets the option of using three other Internet service providers besides AOL. The companies had to meet this condition within three months of offering service in a market.
AOL Time Warner began making AOL available over its cable lines in the 20 largest markets in September with EarthLink available as one alternative.
During the past year, the company has sought agreements with other companies to meet the government requirements for two more providers. In December, the FTC approved Inter.net, based in Reston, Va., to compete nationally with AOL.
While AOL Time Warner has made deals with local providers, the addition of Big Net means the media giant will have three alternatives in all major markets.
On Tuesday, the FTC also said it had approved four other regional Internet providers: Digital Communications Networks Inc. in the Los Angeles area; West Central Ohio LLC for areas in Ohio; LocalNet Corp. for areas in upstate New York; and Global Systems, Inc. in North Carolina and South Carolina.
