New media giant bridges old and new technologies

Here are some of the key areas it will affect.

BROADBAND INTERNET: This denotes high speed Internet access over cable lines, digital subscriber lines, satellite or fiber optic cable. Typically broadband technologies run at least ten times the speed of the fastest telephone modems. Analysts expect over 50 per cent of all users in the US to have access to broadband Internet by the year 2004. In Europe the same level of penetration is expected to be reached a year later.

By allowing more data to pass to consumers' computers, broadband does much more than just speed up web surfing. As data speeds grow it will become fast and simple to deliver all kinds of digital content over the Internet from MP3 music files to the much larger files needed for film and television. The Holy Grail of this convergence technology is video and film on demand, where customers will be able to choose whichever show they like from AOL-Time Warner's vast library of material, and have it downloaded in minutes to their home entertainment center.

INSTANT MESSAGING: One of the fast-growing applications on the Internet, this was first popularized by AOL as an easy and efficient way to communicate with friends families and colleagues over the Internet. Ever since then, AOL has been fighting rival systems that want to integrate their members with AOL's huge customer base. The rules approved on Thursday appeared to open the door for integration. Users of IM services service specify the friends they wish to include on their "buddy lists". They are then informed when their buddies are online and can zap them real time text messages much more conveniently than when using e-mail. Advances in technology mean that the IM system could within a few years provide a cheap, convenient and more powerful alternative to the regular phone system. Video and audio capabilities are expected to be added to the AOL system in the coming months.

INTERACTIVE TELEVISION: This will combine the best features of web surfing with the traditional advantages of television. Interactive signals will enable consumers to do things like look up information on a team while watching a sports game or click on a commercial to make a purchase. They might also be able to participate in real time in live quiz shows, or choose one of several possible endings to a TV drama.

(dpa)