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AOL Changes Its Tone About "Dominating' Broadband Net Field Now Sees Slower Ramp-Up Merger of cable provider and Internet service king hasn't gone as expected.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| June 04, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DOUG TSURUOKA

Whether from necessity or a change of heart, AOL Time Warner Inc. is using a softer tack in pushing speedy broadband Internet services.

Contrary to its public utterings during the merger process of America Online and Time Warner, the world's largest media company no longer talks of dominating the broadband market.

Among other things, AOL has failed to strike deals with many phone carriers and cable firms outside of Time Warner to carry the online service. Also, broadband has taken off slower than expected. And competition among cable and phone companies to offer the services is stiff.

As a result, instead of lording over the broadband market, AOL executives speak of a steady, but slow, rise.

"We intend to ride the consumer adoption curve rather than pushing people (to adopt broadband)," said AOL Broadband President Lisa Hook.

Though about 68% of U.S. homes have access to broadband connections, only 9% to 10% of those households subscribe to get it, says a study issued by the Consumer Electronics Association in January.

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