The company argues that the IM market has changed so much, with rivals rapidly gaining market share, since the FCC imposed conditions on the AOL Time Warner merger, that the restrictions should no longer apply.

In January 2001, the FCC approved the merger with the condition that if AOL ever offered advanced IM-based high-speed services (AIHS) such as videoconferencing over its broadband systems, it would have to make IM interoperable first.

AOL said the condition was based largely on conjectural concerns, and that there is now clear and convincing evidence that the assumptions and predictions made at the time… have proven to be incorrect.

These assumptions are basically that AOL would use its substantial resources to dominate the IM market, and would use that clout to launch advanced services ahead of its rivals. Another assumption was that IM would become the platform for many internet services.

This is not the case, AOL argued in its petition. Rivals Microsoft Corp and Yahoo! Inc have increased their market share, and have both launched video IM services, while AOL’s AIM service looks pretty much the same as it did two years ago.

Consumer-wise, AOL is focusing on premium broadband services as a means to keep its massive connectivity subscriber base happy and attract new content-only subscribers. The company relaunched its broadband strategy last week to much fanfare.

Freeing itself from the restrictions imposed by the FCC would allow it to offer videoconferencing as one such feature. That would also help it keep AIM users from departing to Yahoo or MSN instant messaging services.

But there are also implications for the enterprise. AOL, like its rivals, are pushing IM management and security software at enterprise customers, promoting both the productivity and customer service benefits that it could bring.

If the company is not forced to make its system interoperable, it would be able to try to build a business model around interoperability, and therefore see increased revenue from its enterprise customers.

According to AOL’s petition, the original FCC restrictions contain a get-out clause. AOL can seek relief from the rule by showing that it no longer serves the public interest, convenience and necessity because of changing circumstances.

Source: Computerwire