@Home-Road Runner Merger Stalled?

Talks of a merger between the two cable Internet service providers that last month had a now-or-never urgency are reportedly off for now.

The now-or-never merger between cable ISP @Home and Time Warner's Road Runner looks more like never now.

Analysts were saying in February that the deal needed to take place within the next two months, but differences over valuation, control, and other issues have brought discussions to halt for the time being, The Wall Street Journal reported today.

@Home's owners (TCI owns about 84 percent, with Cox and Comcast holding minority stakes) also have been talking to AT&T about investing in @Home.

While discussions between the two leading cable television-owned Internet services are off for now, TCI is reportedly moving ahead with efforts to set up a publicly-traded Internet-phone company, modeled after @Home. TCI's idea is to use high-speed cable TV lines to handle phone calls, which would be routed over the Internet in a way that potentially would sidestep the Baby Bells.