Juno to Offer High-Speed Access Over Comcast's Lines
Wednesday November 29 12:04 AM ET
By Reshma Kapadia
PHILADELPHIA (Reuters) - Comcast Cable Communications Inc. (NasdaqNM:CMCSA - news) is set to announce a pact on Wednesday that will let Juno Online Services Inc. (NasdaqNM:JWEB - news) offer high-speed Internet access over Comcast's cable system, Juno said.
Providing such access over cable lines has become a hotbed issue and one of the central issues in U.S. regulators' review of America Online Inc.'s (NYSE:AOL - news) $95 billion pending union with Time Warner Inc. (NYSE:TWX - news)
The demand for richer content, such as streaming video and the digital delivery of music, has sparked a race to provide high-speed access over cable and digital subscriber lines.
Juno will become the first nonaffiliated ISP (Internet service provider) to offer high-speed access on Comcast, the third largest U.S. cable provider after AT&T Corp. (NYSE:T - news) and Time Warner.
Comcast's first multiple Internet service provider trial is expected to be conducted in the first quarter of 2001 in the Philadelphia area.
``This trial should help us to figure out what kinds of value-added relationships with ISPs will be most attractive to our customers. Partnerships done on terms that are a win/win for us and for our ISP partners will grow both of our businesses,'' said Steven Burke, president of Comcast Cable.
Under the terms of the pact, the companies will work together to develop a trial under which some Comcast customers will be offered the option of using Juno's high-speed access service through a Comcast connection.
Earlier this year, Juno, the third largest U.S. ISP, signed a pact with Time Warner Cable to offer high-speed access. However, U.S. regulators reviewing AOL's pending acquisition of Time Warner wanted the companies to strike a deal with another national ISP.
Last week, Time Warner struck a deal with EarthLink Network Inc. (NasdaqNM:ELNK - news) to allow the No. 2 U.S. Internet service provider to offer high-speed Web services on its cable system. The move could pave the way for Time Warner and AOL to get U.S. regulatory clearance for their union.
The merger is now expected to close as late as 2001 versus the earlier expectations of completion by autumn 2000. |
