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
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>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
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>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
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>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
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>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
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>not allow ISPs to offer "redlined" service to only a portion
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>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
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>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
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>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)
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>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