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AOL, Time Warner Cable pair on broadband

Sun, 01/30/2005 - 7:00pm
Jeff Baumgartner

America Online and Time Warner Cable have joined forces on a broadband service that will marry an AOL front end with high-speed Road Runner connections.

Under the deal between corporate cousins, AOL will handle the advertising and search applications for the new offering and the Road Runner portal. Time Warner Cable, in turn, will provide subscription billing and customer care, and provide an undisclosed share of subscription revenue with AOL.

Among the goals, the companies hope the move will beef up advertising and premium service revenues, and entice AOL's dial-up subs to migrate to broadband.

AOL and Time Warner Cable expect to introduce the new service "over the next several months," according to company executives.

"This new agreement aligns the strategies of America Online and Time Warner Cable in the fast-expanding broadband sector, and it will enable each business to focus on its key areas of growth," said Don Logan, chairman of Time Warner's Media & Communications Group, in a release.

The AOL-TWC offering will include unlimited high-speed access and 10 hours of dial-up connectivity. In addition to a new AOL client, the service will set up AOL.com as the default home page. Time Warner Cable will continue to sell Road Runner on a stand-alone basis, however.

The companies did not disclose specific pricing, but noted they will test a range of price points during the initial rollout.

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