AOL on look-out for new ISP

AOL Time Warner must partner with a new ISP after High Speed Access pulled out of its May deal, citing financial difficulties.

The Denver-based High Speed Access partnered up with AOL Time Warner as part of the Federal Trade Commissions requirements that AOL Time Warner's cable network be available to at least three ISPs.

This was part of the merger requirements from last December's $112bn tie-up between Time Warner and America Online in the interest of preserving competition.

Andy Holdgate, a spokesman from HSP, was quoted in a Washington Post article that his company was finding it very hard in the current climate "to move forward".

The media giant confirmed it is in talks with other ISP's to replace HSP.

An AOL Time Warner spokesman said that it still plans to start offering services on its cable systems later this month from ISP EarthLink and from Juno Online Services within 90 days pending FTC ratification.

With HSP's withdrawal, AOL Time Warner has dispensed with an FTC complaint that was lodged against it following the merger because of allegations that HSP was never an independent ISP.