Comcast to Test Juno Over Cable Lines
W A S H I N G T O N, Nov. 29, 2000 -- Comcast Cable Communications plans a testoffering of Juno Online Services — the nation’s No. 3 Internetprovider — over its high-speed Internet cable lines.
Comcast, the nation’s third-largest cable operator, has anexclusive agreement with ExciteAtHome, the leading provider ofcable-based Internet services. But Comcast officials say there willbe opportunities in 2001 to alter that arrangement and that it cango ahead with tests to determine the technical feasibility ofoffering multiple Internet services.
“This trial should help us to figure out what kinds ofvalue-added relationships with ISPs will be most attractive to ourcustomers,” said Steve Burke, president of Comcast Cable. “Basedon what we learn, we are eager to move ahead with plans to offer achoice of ISPs on terms that make sense for our ISP partners andus.”
The companies planned to announce the arrangement Wednesday.
Trial Details
Under the trial, set for the first quarter of next year inPhiladelphia, a select group of Comcast’s cable customers in thearea will receive Juno for their Internet service. Companyofficials said they haven’t yet determined whether customers wouldbe charged separately for Juno’s service, since this is a technicaltest and not a marketing offer.
If the technical trial works out, the companies could eventuallyreach an agreement to offer Juno more broadly to Comcast customersand determine under what terms to do so.
“This trial is the first step in what we hope will be a longand mutually beneficial relationship with Comcast,” said CharlesArdai, Juno’s president and chief executive office.
Juno also has been in talks to offer its service over TimeWarner’s high-speed cable lines — negotiations that have garneredadded attention because of the regulatory review of Time Warner’smerger with America Online.
Antitrust officials have demanded that Time Warner offer itshigh-speed online customers a choice of Internet providers otherthan AOL as a condition of their approval. Last week, Time Warnerstruck a deal with AOL’s chief rival, EarthLink, so that customerswill eventually be able to select that Internet service.
Other cable companies also are conducting trials to offermultiple Internet providers over their high-speed lines. AT&TBroadband has an ongoing test in Boulder, Colo., with eightInternet providers participating.
Comcast will have 375,000 high-speed Internet customers byyear’s end, the company said. Comcast said several Internetproviders will probably join the trial.