FC: Pro-regulation groups vie to block AOL Time Warner deal

[Declan McCullagh <declan () well com>]

http://washingtonpost.com/wp-dyn/articles/A56055-2000Dec11.html

AOL Deal's Opponents Mobilizing

By Alec Klein
Washington Post Staff Writer
Tuesday, December 12, 2000 ; Page E01

Opponents of America Online Inc.'s acquisition of Time Warner Inc. are 
mobilizing in a last-ditch attempt to persuade antitrust enforcers to 
attach tough conditions to the deal--or, failing that, to kill it.

The Federal Trade Commission is slated to vote on the $183 billion takeover 
on Thursday, and sources have said at least three of the five commissioners 
are prepared to approve the merger.

Opponents are moving quickly to get in a final word in anticipation of 
action by the antitrust agency. The American Civil Liberties Union said it 
is set to meet with commissioners on Wednesday. Small and mid-size Internet 
service providers from Florida to Wisconsin are contacting commissioners by 
telephone, e-mail and letter, and some representatives may come to 
Washington to meet with them this week. Some consumer groups said they have 
appointments with commissioners today.

Meanwhile, FTC staffers recently invited AOL nemesis Microsoft Corp. to 
weigh in on the merger, sources said. Microsoft officials, who have 
repeatedly raised concerns about the deal, declined to confirm or deny that 
they will speak to the antitrust agency again this week. "We've had a 
dialogue with the [FTC] staff," said a Microsoft spokesman.

[...]

**********

> Date: Mon, 11 Dec 2000 10:44:21 -0500
> From: Jeff Chester <jeff () cme org>
> Subject: Small and medium size  ISPs Sound Alarm over FTC Deal on AOL-TW
>
> Note: This release and accompanying documents were written by a coalition 
> of small and medium ISPs.  They are concerned that a proposed FTC 
> settlement with AOL-TW fails to take into consideration their needs.   CME 
> believes that Internet competition and diversity will be irreparably 
> harmed if the FTC agreement doesn't protect their interests.
>
>
>
>
>
> For Immediate Release
>
>
> Small and Medium ISPs Ask: What About Us
>
>
> November 20, 2000. Oshkosh, WI.  With the announcement of an Earthlink and 
> AOL/Time-Warner
> High Speed Internet Access agreement, many state ISP associations and 
> individual ISPs are asking
> themselves the following question: While the largest ISPs like AOL. 
> Earthlink, MSN, and Juno are dividing up the United States, what about all 
> other the ISPs throughout the country?
>
> Accordingly, the Federation of Internet Solutions Providers of the 
> Americas (FISPA), the Texas ISP Association,Wisconsin ISPs like NorthNet, 
> Athenet, CyberZone, and Green Bay Net, and many other ISPs like RMI, STIC, 
> Texas.net, Jump.net, and Illuminati Online remain wary about their rights 
> of "non-discriminatory open access" to Time-Warner's cable lines. 
> Additionally, the long delay mentioned in the Earthlink access 
> announcement, i.e. High Speed Internet access starting in the second half 
> of 2001, does not address the "first to market" advantage still maintained 
> by the merged AOL/Time-Warner company.
>
> According to Stephen Heins, Director of Marketing for NorthNet, "We have 
> not seen the actual Earthlink/Time-Warner agreement, so I can safely say 
> the devil is in the lack of details. This is the same problem we have had 
> with the original Memorandum of Understanding issued on February 29, 
> 2000."  By the time Earthlink is finally granted access, 18 months will 
> have elapsed since AOL/Time-Warner promised Open Access and several 
> million Internet users will have switched from ISPs to Time-Warner's
> High Speed Internet connections.
>
>
> The small and medium ISPs will request from the FTC and/or the FCC the 
> right to review the Earthlink contract in order to answer the following 
> important questions:
>
> … How long will the Earthlink access agreement remain secret?
> … Does the new Term Sheet resemble the old one?
> … Is there a $50,000 deposit for each ISP?
> … Will ISPs be able to provide alternative, not Time-Warner, content?
> … Who will have control of the set-top box in the consumer's home?
> … Does Non-Discriminatory Open Access include Interactive Television?
> … Will ISPs be able to provide broadband cable to the business community?
> … Will ISPs have to share revenues with Time-Warner?
> … Can multiple small ISPs form partnerships for Time-Warner access?
> … Does the Earthlink/Time-Warner agreement become the definitive business 
> model for "non-discriminatory open access?
> … Do small and medium sized ISPs have the opportunity to provide input 
> into final shape of the Open Access business model?
>
> FISPA Executive Director, Joe Marion, said, "Our members have always been 
> deeply concerned about the issue of open access.  Increasingly, however, 
> we have felt that the AOL/Time Warner merger, absent meaningful 
> non-discriminatory open access for ISPs and Interactive TV, is bad not 
> only for FISPA, but also for consumers and competition.  Without knowing 
> the specifics of the deal between Earthlink and AOL/Time Warner for 
> meaningful competition to occur amongst ISPs we MUST have 
> non-discriminatory open access to the entire AOL/Time Warner platform."
>
> Given the fact that there is enormous potential for anti-competitive and 
> anti-consumer mischief in the AOL/Time-Warner merger, many of the 7700 
> ISPs in the U.S. are anxiously awaiting some sign that their customers' 
> and their interests' are being protected. As Gene Crick, executive 
> director of the Texas ISP Association, states, "Local and regional ISPs 
> have done a damn good job of serving their communities and regions and we 
> don't want them to be left out of the mix. We fear that Time-Warner and 
> its large corporate friends at the national level may be secretly 
> cooperating to cut off small and regional ISPs"
>
>
>
>
> Contact information for the above-mentioned ISPs:
>
> W. Scott McCollough, for TISPA, STIC.net, Texas.net, Jump.net, and 
> Illuminati Online
> wscm () smccollough com
> 512.485.7920
> Gene Crick for TISPA
> Gcrick () main org
> 512.303-6246
>
> Joseph Marion
> Federation of Internet Solutions Providers of the Americas
> 561-266-9438
> jmarion () fispa org
>
> Stephen Heins
> Director of Marketing
> NorthNet
> 920-233-5641
> steveh () northnet net
>
> Ray Williams
> CyberZone
> 715-735-8500
> sysop () cybrzn net
>
> Eric Christenson
> P.O. Box 2366
> Green Bay, WI 54306-2366
> 920-437-GNET
> Eric () GreenBayNet com
>
> Bob Verstegen
> Director of Sales
> Athenet Data Exchange
> 920-954-9799

[MSWD attachments not converted. --DBM]





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