America On-Line: will it survive ...? Message Board

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

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To: James F. Hopkins who wrote (1908)	2/26/1997 5:02:00 AM
From: Art Stone	of 13594

It's pretty clear that the reason for the rebound was the Tel-Save deal. I've been poking out the Edgar stuff, and they (unlike AOL) actually have a product that makes a real profit. The infusion of $100 million in cash may get AOL through the next few months, and if AOL is unable to convince their members to switch to this carrier, AOL has to start repaying the $100 million (over several years).. It may buy them some time. One of the interesting little details about TALK is that they are buying their own network of digital switches. The first one to go online was in, of all places, Jacksonville, Florida. Curiously, AOL has a large customer support complex in Jacksonville. Any chance Tel-Save is AOL's 800 service provider? If TALK thinks they are going to bring on 3.5 million AOL members, I sure as hell hope they have a better notion of capacity planning than AOL does.

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