AOL Time Warner needs ISP partner - Broadcasting & Cable

AOL Time Warner needs ISP partner

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AOL Time Warner reportedly has lost one of ISP partners in high-speed Internet service, prompting a quest for a new pact to satisfy conditions set by the federal regulators to clear the merger that spawned the media behemoth.

An AOL Time Warner spokesman confirmed reports that High Speed Access Corp. has pulled out of its deal to provide its customers Web access over AOL's Time Warner cable systems. The small Denver firm, which boasts approximately 176,000 Internet subscribers, reportedly said it can't ante up for a content partner or to market the Internet service over cable.
As a condition to clear the $112 billion merger of America Online and Time Warner, the Federal Trade Commission ordered the combined company to make its cable network accessible to at least three rival Internet service providers to foster competitive balance.

The deal with High Speed Access was the latest signed by AOL Time Warner. It also struck deals with EarthLink and Juno Online Services.

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