Tribal Voice, iCast Propose AOL IM Conditions

Two rivals of the America Online Inc. instant
messaging (IM) service have reportedly recommended conditions to the
Federal Communication Commission (FCC) that regulators should place
on AOL's pending merger with cable and media giant Time Warner Inc.

A Reuters report today said the CMG Information Services Inc. Tribal Voice unit and iCast Corp. collaborated on a
response to FCC queries on how the merger, currently valued at about
$130 billion, would impact the IM industry. The AOL IM rivals called
on the company, which holds a dominant position in the market, to
open its system so that rivals can chat with AOL users.

Instant messaging allows millions of Web users to swap quick messages
with online friends and family, and AOL has repeatedly said it is
committed to interoperability once privacy and safety concerns are
addressed. The proposed merger between the two giants has drawn
heightened scrutiny from regulators, especially on the issue of
allowing competitors to use the combo's high-speed cable lines in
cities where Time Warner now operates cable TV systems, and on the IM
issue, with industry players cautioning that the partnership could
become "non-competitive and non-accessible, with higher entry
barriers" unless the FCC imposes certain conditions. The Tribal
Voice - iCast paper asks that regulators require AOL-Time Warner to
cease blocking the exchange of IM traffic by other providers
immediately, and recommends restrictions on AOLTV service in Time
Warner franchise areas until instant messaging is fully
interoperable, noting that IM is a central feature of AOLTV's
interactive offering, the report said.

Reported by Newsbytes.com, http://www.newsbytes.com.