Time Warner Admits Mistake

Time Warner Inc., Friday announced it had reached a settlement with SBC Communications Inc. SBC had found evidence that a Texas office of Time Warner was asking local employees to scout out the SBC network.

by Jim Wagner
ISP-Lists Managing Editor

of internetnews.com
[August 11, 2000]

Officials for the two companies would not discuss terms of the dispute settlement, signed in July.

Espionage?
SBC filed a complaint the Texas Public Utilities Commission in May, alleging that Time Warner offered to pay employees cash or free cable Internet access if they signed up for digital subscriber line service and later cancelled them. SBC produced a written offer that was mailed to 1,200 Time Warner employees in Texas.

The process would show where DSL service was available, giving Time Warner and its Road Runner cable Internet service an unfair advantage.

Apologies
Edward Adler, Time Warner spokesman, said the company was sorry for what was done in Texas and that it only happened in 20 cases before the scheme was stopped.

"It was clear that we made a mistake at the local level," Adler said. "We apologized, and we made a settlement."

According to Michael Coe, SBC spokesperson, the settlement was filed with the PUC, who later approved the deal.

Crime and punishment
SBC also sent a letter detailing the complaint to the Federal Communications Commission, which is looking at the proposed Time Warner-America Online, Inc., merger. Both companies have maintained the $116.4 billion merger would not stifle competition in the high-speed Internet access market.

The FCC is hanging on to SBC's letter as it considers the Time Warner-America Online Inc. merger.

—End