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AOL-Time Warner (AOL-TW) called complaint by Texas ISP Texas.Net ...

AOL-Time Warner (AOL-TW) called complaint by Texas ISP Texas.Net that it was discriminating against local and regional ISPs that wanted to use its own cable lines to offer service “legally groundless” and “factually baseless.” AOL-TW made comments in letter…

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dated Sept. 4. Replies to initial complaint were due Sept. 14, and FCC is expected to rule by Oct. 8. Texas.Net said AOL-TW failure to negotiate in “good faith” violated conditions placed on merger of AOL and TW by FTC and FCC. AOL-TW said it had been issuing monthly reports on its negotiations with ISPs to FTC and independent monitor Dale Hatfield, former FCC chief technologist. AOL-TW said Texas.Net’s complaint was based on condition that didn’t exist, that it was prepared to begin discussions with ISP’s executives and that it was “moving steadily forward” in effort to provide cable subscribers with choice of multiple ISPs. Texas.Net, in its rebuttal, said AOL-TW offered no proof it had engaged in “good- faith” negotiations.