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Time Warner, Juno in pact
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July 31, 2000: 11:35 a.m. ET
Time Warner to make Internet provider Juno available to cable subscribers
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NEW YORK (CNNfn) - Time Warner and Juno Online on Monday unveiled a pact that will allow Juno to offer its Internet access service to Time Warner Cable subscribers over its high-speed Road Runner system.
Under a binding letter of intent, the agreement makes New York-based Juno the first Internet service provider (ISP) to Time Warner Cable customers, other than Road Runner's own ISP.
New York-based Time Warner (TWX: Research, Estimates), the parent of CNNfn.com, called the pact a "direct result of Time Warner Cable's commitment to distribute the services of multiple Internet access providers on its broadband network."
The question of access is a key sticking point in critics' opposition to Time Warner's planned merger with America Online. The companies have defended their planned $120 billion merger to federal regulators in the face of accusations that the massive deal could stifle customer choice.
 "This agreement coupled with our recently announced intention to restructure Road Runner, is indicative of fulfilling our promise offering multiple ISP's over Time Warner Cable," a Time Warner representative told CNNfn.com.
Last week, Time Warner chairman and chief executive Gerald Levin revealed plans to restructure the company's partnerships in Road Runner, the broadband conduit which links about 900,000 customers to the Internet at speeds up to 50 faster than via regular telephone connections.
The cable company has had an exclusive contract with Road Runner that runs through the end of 2001. The pact has prohibited third-party providers.
Road Runner is a joint venture among units of Time Warner, AT&T, Microsoft, Compaq and Advance/Newhouse.
The decision to restructure Road Runner comes following the U.S. Justice Department's requirement that AT&T sell its stake in Road Runner within 18 months as a condition of its $50 billion acquisition of MediaOne. AT&T owns a controlling stake in Excite@Home, Road Runner's rival in providing Internet access through cable lines.
Time Warner had said it was in talks with several ISPs, including AOL (AOL: Research, Estimates), toward deals such as the one with Juno. Once the restructuring is completed and other deals are signed, Time Warner Cable customers will be able to choose which provider will bring them Internet access over the high speed line.
Time Warner has no set date for the competition of the restructuring, only indicating that it will come much sooner than late 2001, when Road Runner's exclusivity period was to end.
Customers to be offered upgrade to Juno Express
Juno (JWEB: Research, Estimates), created in 1996 as a provider of free electronic mail, will offer complete Internet access, content and applications available in Juno Express, its broadband service that was launched earlier this year.
Existing customers in Time Warner Cable's service area using slower, dial-up connections will be able to upgrade to the high-speed service, Juno said.
Juno classifies itself as the No. 3 ISP, with some three million active subscribers, though most utilize Juno's free service, which is supported by advertising. Juno's three million customers compares with more than 23 million for AOL, and 4.2 million for EarthLink.
"Juno is committed to being a leader in the area of high-speed Internet access, and this relationship is a major step in our plan to offer subscribers nationwide a wide range of options," said Charles Ardai, Juno's president and chief executive, in a statement. "We believe this relationship with Time Warner will allow us to offer an attractive new option for Juno subscribers who are ready to make the move to broadband."
Juno will join with Time Warner Cable in a multiple ISP trial in Columbus, Ohio, that is intended to help identify and resolve implementation issues. Under the agreement, both Juno and Time Warner Cable plan to market Juno Express to their customers and have the ability to price and package the service independently.
Investors cheered the deal, with Juno Online shares up 2, or 25 percent, to 10, on trading volume of about one million, nearly three times its daily average. Time Warner shares climbed 1-11/16 to 77-1/16. 
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