{ "docId": "019dd923-622b-71dc-a6dc-5545fa71721e", "docSlug": "852eb8103109", "documentTitle": "Time Warner Inc. (TWX)", "authorId": "14_Icahn", "authorName": "Lazard", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2006-02-01 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 41, "pageCount": 371, "prevPage": 40, "nextPage": 42, "slideType": "executive_summary", "function": "diagnose_problem", "density": "dense", "nDataPoints": 4, "notes": "This is a text-heavy slide providing historical context on AOL's market position and regulatory environment.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-5545fa71721e/41", "deckHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e#slide-41", "components": [ { "bbox": null, "kind": "callout", "text": "The RBOCs are currently courting consumers with aggressive prices. Verizon and AT&T currently offer introductory DSL rates of as low as $15 per month for the first year, less than AOL charges for its standard dial-up service.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-14db-7299-bdf6-89f753742553", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.012, "w": 0.083, "x": 0.083, "y": 0.942 }, "kind": "other", "text": "30 LAZARD", "attrs": null, "subkind": "unclassified", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ab52171-3e18-4b7c-8b3e-95b7f65d1956", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.125, "w": 0.767, "x": 0.116, "y": 0.107 }, "kind": "paragraph", "text": "broadband offerings, AOL was increasingly losing low-end subscribers to low-cost dial-up providers such as NetZero that charged rates starting at $9.99 per month. Also, as the content and navigation generally available on the Internet became more accessible and compelling, the proprietary features offered by AOL became less differentiated. AOL's domestic subscribers peaked in September 2002 at 26.7 million. AOL's difficulties in upgrading its user base to DSL offerings also took a toll on many of its infrastructure partners. For example, a number of the DSL focused CLECs such as Northpoint and Rhythms went bankrupt and were liquidated.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3db12868-ea67-46b6-b0d7-e47b97501639", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.255, "w": 0.767, "x": 0.116, "y": 0.242 }, "kind": "paragraph", "text": "Despite the CLEC bankruptcies, regulatory policy continued to become more favorable to the RBOCs over time. Prior to the Merger, AOL had been a forceful lobbyist championing the cause of independent ISPs seeking unbundled access to RBOC network elements. Upon consummation of the Merger, AOL's regulatory position changed. Given the potential implications of an unbundled access regulatory policy on TWC, AOL began to champion a policy in which unbundling would occur only on a voluntary basis. In the absence of political resistance from AOL, the RBOCs were able to successfully argue to the FCC and in court that the then existing regulatory policy that focused on the unbundling of network elements was misguided as it provided a disincentive for RBOCs to invest in new infrastructure. The RBOCs proffered a series of formal and informal commitments to upgrade infrastructure and provide more facilities-based competition to the cable MSOs in exchange for regulatory relief. Ultimately, the RBOCs were rewarded with a series of favorable FCC rulings and court decisions that had the cumulative effect of lessening the obligations of the RBOCs to share lines with CLECs and other ISPs.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ab62f50d-9251-45d4-b093-c30b95a9c5b1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.767, "x": 0.116, "y": 0.672 }, "kind": "paragraph", "text": "The RBOCs are currently courting consumers with aggressive prices. Verizon and AT&T currently offer introductory DSL rates of as low as $15 per month for the first year, less than AOL charges for its standard dial-up service.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ead4742d-1a0c-4f64-9adb-a870640d7fae", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.155, "w": 0.767, "x": 0.116, "y": 0.507 }, "kind": "paragraph", "text": "One of the most significant of these decisions was the August 2003 Triennial Review Order, which was based on a comprehensive review of the network element unbundling obligations of the RBOCs. The order gave RBOCs exclusive rights to offer service over new fiber networks they build. The order also phased out the policy of \"line sharing,\" making it more costly for independent DSL providers to offer broadband. The FCC has continued to take actions favorable to the RBOCs. In August 2005, the FCC voted 4-0 to reclassify DSL from a telephone service to an \"information service\". This effectively removed the regulation requiring telephone companies to offer their lines to competing DSL providers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fdce14ef-81a5-4e9f-966e-343048a26b33", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.012, "w": 0.125, "x": 0.708, "y": 0.077 }, "kind": "title", "text": "CHAPTER 2A: AOL", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "06c9a3ac-6f74-415e-8599-c30bc19c0b97", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 50, "from": 31, "beatId": "ea5783e1-e74d-4501-8f63-31239b39ce7f", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Evidence & Proof", "beatSlug": "consultants-gambit-evidence-proof", "evidence": "The document provides evidence and proof of the challenges and complications faced by Time Warner Inc., including financial data, market analysis, and benchmarking.", "position": 2, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }