Bemused ISPs take stock of acquisition

With AOL buying Netscape, ISP competitors are scrambling to figure out what it means.

"I'm a bit bemused," said Tim Challenor, MD of Internet Network Services.

"Any decent development team can knock together a software browser. I think this is a strategic purchase concerned with share value. I fail to see any real tangible benefit for the end user."

"It could also help strengthen Microsoft's legal proceedings. It can be argued that the deal will give AOL similar control and so it could take the heat off them," said Jos White of Star Internet. "The battle with Microsoft will begin to hot up again, but with a significant change in terms of the browser and number of users. In terms of controlling user-base, this deal puts AOL in a strong position. Microsoft has controlled the internet because of its browser software but AOL and Netscape together are well positioned to take the upper hand."

"Unquestionably it will be good for the internet and so it has got to be good for us," said UUNet's Richard Woods. "My interpretation is that it gives AOL greater freedom to concentrate on content. UUNet manages AOL's network services, which has allowed them to concentrate on content."