Advocates Continue to Raise Concerns
About AOL's Instant-Messaging Service
interactive.wsj.com
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Excerpts:
WASHINGTON -- Fearing that the Federal Communications Commission won't act broadly to require America Online Inc. to open its so-called instant-messenger service to competitors, consumer groups are pushing the agency to start an independent proceeding on the matter
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But that is unlikely, according to one FCC insider, given the agency's demonstrated reluctance to regulate the Internet, something that could increase under a Republican-led FCC next year.
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The FCC aims to resolve these issues and rule on AOL's proposed acquisition of Time Warner Inc. by the end of the year, but that is some doubt as some commissioners were expected to be out of town all of next week. However, they were also expected to be in contact and won't need to meet in order to cast their votes.
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At the FCC, there is a clear precedent for a proceeding on interactive television over cable, an FCC official said. In the past, the FCC has ordered that cable set-top boxes be made commercially available with open, rather than proprietary, architecture. It is just one additional step to apply require open standards in cable interactive television
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But FCC lawyers have questioned how the agency could place conditions on AIM that aren't specifically related to the merger. The lawyers say the agency could act regarding "advanced" instant-messaging services that would be provided over Time Warner's high speed cable lines.
Advanced services would include high-quality video conferencing, facilitated by high-speed cable's ability to stream video over the Internet. Using such a service, a group in disparate locations could go online to watch a film clip together while talking about it.
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In another twist, AOL told commissioner Susan Ness that a condition requiring AOL to open up provides no guarantee that its competitors would extend it the same courtesy. AOL has noted that Microsoft Corp. is including its MSN Messenger in the latest consumer version of its ubiquitous Windows software. That could give Microsoft leverage to gain a huge share of the market and an incentive to shut out AIM.
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