Time Warner boosts cable modem service

Time Warner, the media and cable TV company being acquired by America Online for $160 billion, has announced an aggressive new move to expand cable-based, high-speed internet access. The company said it had placed a new order with Motorola for some 500,000 Surfboard SB3100 and DM100 modems. The deal is valued at $125 million.

Time Warner offers high-speed cable-modem service through Road Runner, a company it owns, along with MediaOne Group, Compaq Computer and others. Broad availability of high-speed cable access to internet will benefit AOL which has been shut out of the AT&T-based cable TV network.

Time Warner currently has 330,000 Road Runner subscribers and expects to double the figure this year. The company has 13 million American households subscribing to its cable services.