From: Tony Berkman (tberkman@rcn.com)
Date: Mon Dec 25 2000 - 22:42:44 PST
http://dailynews.yahoo.com/h/ap/20001225/tc/aol_time_warner_26.html
I always find it amazing that Microsoft can make these challenges with a 
straight face.  It's not like Time Warner won't allow other IM protocols to 
communicate with each other over their cables (Something MSFT would 
probably have explored had they acquired Time Warner).
Monday December 25 12:33 PM ET
                      AOL Service Leads to Controversy
                      By KALPANA SRINIVASAN, Associated Press Writer
                      WASHINGTON (AP) - All else being equal, Duane 
Roelands would prefer to
                      dash off short instant text messages to co-workers 
and friends with the service
                      offered by Microsoft - the one he finds easiest to use.
                      But for Roelands, all else is not equal: His office, 
clients and nearly everyone
                      else he knows use America Online's messaging system. 
Now, he does too.
                      ``There are features that I want and I like,'' said 
Roelands, a Web developer,
                      who likens it to the battle between VHS and Beta 
video recorders in the 1980s.
                      ``But the reality is if I use the better product, I 
get less functionality.''
                      For this reason, instant messaging rivals like 
Microsoft, AT&T and
                      ExciteAtHome said their users ought to be able to 
send messages to anyone
                      else, regardless of what service they happen to have. 
That's not currently
                      possible.
                      The companies are lobbying the Federal Communications 
Commission (news -
                      web sites) to require AOL to make its product 
compatible with those offered
                      by competitors as a condition of its merger with Time 
Warner.
                      So far, the agency appears to favor a more tailored 
approach. The
                      commission's staff has recommended that AOL be 
required to make its system
                      work with at least one other provider, but the 
requirement would apply only to
                      advanced instant messaging services offered over Time 
Warner's cable lines.
                      How the agency defines advanced services is unclear. 
They could refer to
                      features beyond text messaging, such as video 
teleconferencing, the sharing of
                      files or messaging over interactive television.
                      Today, consumers more commonly take advantage of the 
garden variety
                      functions. They type short real-time phrases to 
others, allowing them to ``chat''
                      back-and-forth using text. Unlike e-mail, it's 
instantaneous and gets the
                      recipient's attention right away.
                      People can communicate with international friends 
without the hefty phone
                      bills. And the service has taken hold with those who 
have hearing or speech
                      disabilities.
                      Unlike the telephone, people can discreetly interact 
with others - or decide not
                      to.
                      ``It's communications that can be ignored,'' said 
Jonathan Sacks, a vice
                      president at AOL, which runs the two leading 
messaging services - ICQ and
                      AIM - with 140 million users. ``On the telephone, you 
can't see when
                      somebody is near the phone. You can't see when it's 
convenient for them to
                      communicate with you.''
                      AOL rivals say that if instant messaging is to be as 
ubiquitous as the phone
                      network, it has to work the same way: People who use 
different providers must
                      still be able to contact one another. They continue 
to lobby the FCC, hoping to
                      see the conditions broadened before the agency issues 
its final decision.
                      ``It's really important to get this right before 
innovation is squashed because one
                      company has a monopoly,'' said Jon Englund, vice 
president of government
                      affairs for ExciteAtHome. ``It's absolutely critical 
that Internet uses have real
                      choice among competing platforms.''
                      AOL has said it wants to work toward 
interoperability, but first needs to
                      protect consumer privacy and security to prevent the 
kinds of problems that
                      have emerged in the e-mail world, like spamming - 
unwanted junk messages.
                      Company officials disagreed that AOL's market share 
was keeping out
                      competitors. AOL executives cited a recent study by 
Media Metrix indicating
                      that the messaging services offered by Yahoo! and 
Microsoft are the fastest
                      growing in the United States.
                      Why all the fuss over a free product that anyone, 
even those who don't
                      subscribe to AOL, can use?
                      Some pointed to the recent demise of two instant 
messaging competitors -
                      iCAST and Tribal Voice - as evidence that AOL's 
dominance could prevent
                      choices in the market.
                      Another concern is that AOL could use its substantial 
customer base to tack on
                      new advanced services and then charge for them.
                      Rivals said the ability of various services to work 
together will become
                      increasingly important in the future. For example, as 
instant messaging migrates
                      to cell phones or hand-held computer organizers, 
consumers won't want to
                      have to install multiple services on these devices, 
said Brian Park, senior
                      product for Yahoo! Communications Services.
                      ``You can have the best service and the coolest 
features, but nobody is going to
                      use it if it doesn't communicate with other 
services,'' Park said.
                      -
                      On the Net:
                      America Online corporate site: http://corp.aol.com
                      IMUnified, coalition formed by AT&T, ExciteAtHome, 
Microsoft:
                      http://www.imunified.org/
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                      Earlier Stories
                      Rivals Oppose AOL Instant Messenger (December 20)
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