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Technology Stocks : America On-Line: will it survive ...?

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To: Joel Sternberg who wrote (1197)1/26/1997 8:33:00 PM
From: James F. Hopkins   of 13594
 
Joel: AT&T has had the offer for some time, they are not pushing
very hard because they are not sure they want to get into the
mess AOL has made..I personally know 3 local ISP providers, there
is no big profit margin in it..in fact it's very slim..and the
big gorilas will never make a profit..they have to much overhead,
the little ISP guy does most of his own work, and sometimes even
sets up a system in a spare bed room..you have PC CLUBS now that
are non profit..Like in Houston, and you can join and get on
internet via one of them like dirt cheap..collages give it to
students..no grass here for the big gorilas..Thats why AOL is
folding, at one time they had a sort of BBS system networked
together and offered something that others did not have,
they have tried the internet play and have lost their shirt,
internet plays will not be for the big cos trying to be an
ISP provider..compuserve saw wht happened too..they have made
it clear they want coperate biz..they know you can't do it
on a flat 19.95..only the little guy can do it that cheap and
live.. they don't all belive that yet..but they will, sprint
has the best idea, they just havnt done it yet..sort of unsure
of themself..as you know Radio Shack..is a franchies..sprint
had the idea of selling all the R.S. indepentents bandwidth,
and let them run the ISP hookup part..that will work..if they
plan it right..as the store is there..a system does not take up
much space , you can hide faily large one in a closet..
AT&T has it, but is not sure the want it..if they do they sure
wont have to pay much to get AOLs customers, they could push
a big add or two..and woosh..goodby AOL..
so the question is do they even want it ? particularly at flat
rates..compeating with P C clubs..and such..I think they will
ease out..the back door..and just let AOL drowned..it's been
gasping for air now for a year..more and more clubs comming on
line..more and more back room home owned ISP servers, and don't
let that fool you some of the best hackers in the world are
running most of the homeowned ISPs, try republic.net
there is a home owned ISP provider..who is in my books sharper
than any guru AOL has..I'm not pluging him mind you..as he
is not out to capture the world..just provide a good hook up
for the local folks..thats what has been growing..all the little
ISPs..hell AOLs 8million customers are but a drop in the bucket,
and they will never be able to serve them at the rate they
jumped to and turn a profit..it can't be done by a gorila,
like I say they may keep trying, but after they lose severall
billion bucks they will give up.
JIM
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