IP: AOL TW MoU on "open access" [comments welcome djf]

[Dave Farber <farber () cis upenn edu>]

> Date:         Tue, 29 Feb 2000 10:01:56 -0500
> From: Donald Weightman <dweightman () RADIX NET
>
> Cheers, as appropriate:
>
> dw in dc
>
>          ----------------------------------------------------
>                       MEMORANDUM OF UNDERSTANDING
>
>            Between Time Warner Inc. And America Online, Inc.
>
>                REGARDING OPEN ACCESS BUSINESS PRACTICES
>
>                            February 29, 2000
> 1. This Memorandum of Understanding ("MOU") sets out the
>
> commitments that AOL Time Warner will make to provide open
>
> access (i.e., to make a choice of multiple Internet Service
>
> Providers ("ISPs") available to consumers) on its broadband
>
> cable systems. It is the intention of the parties to enter
>
> into as quickly as possible a binding definitive agreement to
>
> provide broadband AOL service on Time Warner's cable systems,
>
> which will be used as a model for the commercial agreements
>
> that will be available to other ISPs.
>
> 2. AOL Time Warner is committed to offer consumers a choice
>
> among multiple ISPs. Consumers will not be required to
>
> purchase service from an ISP that is affiliated with AOL Time
>
> Warner in order to enjoy broadband Internet service over AOL
>
> Time Warner cable systems. AOL Time Warner intends to
>
> encourage actively other cable operators similarly to provide
>
> consumers with a choice of broadband ISP offerings.
>
> 3. AOL Time Warner will effectuate such choice for consumers by
>
> negotiating arm's-length commercial agreements with both
>
> affiliated (such as AOL) and unaffiliated ISPs that wish to
>
> offer service on the AOL Time Warner broadband cable systems.
>
> Pursuant to such commercial agreements, AOL Time Warner will
>
> partner with ISPs to offer consumers a choice of competing
>
> broadband Internet service offerings.
>
> 4. AOL Time Warner will not place any fixed limit on the number
>
> of ISPs with which it will enter into commercial arrangements
>
> to provide broadband service to consumers. AOL Time Warner
>
> will provide its consumers with a broad choice among ISPs,
>
> consistent with providing a quality consumer experience and
>
> any technological limitations in providing multiple ISPs on
>
> its broadband cable systems.
>
> 5. The terms of the commercial agreements between AOL Time
>
> Warner and ISPs wishing to provide broadband service will not
>
> discriminate on the basis of whether the ISP is affiliated
>
> with AOL Time Warner. Thus, while the economic arrangements
>
> reached by AOL Time Warner and ISPs wishing to provide
>
> broadband service will vary depending on a number of factors
>
> (such as the speed, marketing commitments, and nature and
>
> tier of the service desired to be offered), AOL Time Warner
>
> will not discriminate in those economic arrangements based
>
> upon whether or not the ISP is affiliated with AOL Time
>
> Warner. In addition, AOL Time Warner will operate its
>
> broadband cable systems in a manner that does not
>
> discriminate among ISP traffic based on affiliation with AOL
>
> Time Warner.
>
> 6. AOL Time Warner will allow ISPs to provide video streaming.
>
> AOL Time Warner recognizes that some consumers desire video
>
> streaming, and AOL Time Warner will not block or limit it.
>
> 7. AOL Time Warner will allow ISPs to connect to its broadband
>
> cable systems without purchasing broadband backbone transport
>
> from AOL Time Warner.
>
> 8. Consistent with technological capability, AOL Time Warner
>
> will offer ISPs the choice to partner with it to offer
>
> broadband Internet service on a national (on all AOL Time
>
> Warner cable systems), regional or local basis, in order to
>
> facilitate the ability of consumers to choose among ISPs of
>
> different size and scope. AOL Time Warner is committed to
>
> bring the benefits of the Internet to all Americans, and will
>
> not allow ISPs to offer "redlined" service to only a portion
>
> of an AOL Time Warner cable system that is fully enabled to
>
> provide broadband service.
>
> 9. AOL Time Warner is also committed to allow both the cable
>
> operator and the ISP to have the opportunity to have a direct
>
> relationship with the consumer. Accordingly, both the cable
>
> operator and the ISP will be allowed to market and sell
>
> broadband service directly to customers. When AOL Time
>
> Warner's cable systems sell broadband Internet service to a
>
> customer, they will be entirely responsible for billing and
>
> collection. When an ISP sells broadband Internet service
>
> directly to a customer, it may, if it so chooses, bill and
>
> collect from the customer directly.
>
> 10. This MOU represents an initial step by Time Warner and AOL to
>
> articulate the terms, conditions and parameters under which a
>
> combined AOL Time Warner will offer consumers access to
>
> multiple ISPs on its broadband cable systems. It is the
>
> intention of the parties to continue to refine those
>
> particulars in a manner that is responsive to, and consistent
>
> with, the desire of consumers to have a choice among multiple
>
> ISPs offering broadband service and the still-evolving nature
>
> of the cable infrastructure.
>
> 11. All of the foregoing is subject to all pre-existing
>
> obligations of Time Warner, including without limitation Time
>
> Warner's agreements with Serviceco, LLC (d/b/a Road Runner)
>
> and its fiduciary and other obligations to its partners.
>
> However, Time Warner will endeavor to reach agreements and
>
> accommodations with third parties to which pre-existing
>
> obligations are due that would permit the full implementation
>
> of the commitments described herein as quickly as possible.
>
> -------------------------- --------------------------- Stephen M. Case
> Gerald M. Levin America Online, Inc. Time Warner Inc.
> ------------------------------------
>
> Donald Weightman
> dweightman () radix net
> 202.544.1458