Time Warner is the second largest cable-TV operator in the U.S. Through its networks AOL can begin to offer high-speed "broadband" services such as video-on-demand and music sales over the Web to a mass market.

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Cable TV providers, for example, are dedicating ever more capacity to on-demand video and broadband and relatively less to broadcast.

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Such services include broadband Internet access, telephony and on-demand video, and they help differentiate cable from its somewhat less expensive rival, satellite TV.

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Others say fixed-line operators, especially those that have a strong fiber optic backbone in place, are better bets because they are players in the broadband services game -- offering pay TV, video-on-demand, home shopping and banking as well high-speed Internet access.

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