Time Warner Cable Tests VoIP

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Time Warner Cable said it has expanded its trial of local Internet
protocol-based phone services to Rochester, N.Y.-area subscribers.

The MSO's initial 'Line Runner' test site took place in Portland, Maine. That
trial showed 'excellent customer acceptance' of VoIP, Time Warner Cable chairman
and CEO Joseph Collins said in a press release.

He added that the MSO's initial market research indicated that between 40
percent and 50 percent of Road Runner customers would subscribe to Line Runner,
and that buy-rates among home-office users could be even higher.

Time Warner Cable said it is marketing Line Runner as a second line to Road
Runner customers in Rochester, essentially bundling VoIP and high-speed-data
services. As many as 1,000 high-speed subscribers will participate in the latest
trial, the company said.

The MSO will offer the VoIP base service for $9.95 per month. Optional
features, such as caller ID and voice mail, will send the price higher.

Line Runner's offering delivers voice services by linking a standard
telephone into a cable modem. From there, voice packets are transmitted via the
cable system as part of the Road Runner data stream, Time Warner Cable said.

In a separate announcement, the MSO's parent, AOL Time Warner Inc., struck a
technology deal with Nortel Networks that will touch various aspects of the
media giant's service portfolio.

For example, Nortel will help the company to develop and sell commercial
services using AOL Time Warner's 'AOLbyPhone' software bundle, which enables
voice communications via the Internet.

Additionally, Time Warner Cable and Nortel will collaborate on a technical
trial involving the delivery of 'rich, new' content to cable, online, print and
broadcast consumers.

That partnership will demonstrate how AOL Time Warner 'can meet a
sophisticated technology company's online-, print- and television-advertising
and marketing needs under one roof, enabling them to reach consumers and
businesses in new ways across multiple platforms,' AOL Time Warner co-chief
operating officer Bob Pittman noted in a press release.

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