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Technology Stocks : America On-Line: will it survive ...?
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To: James F. Hopkins who wrote (2065)3/2/1997 4:09:00 AM
From: Allen Plyler   of 13594
 
James,

You might find some of the conference call comments from the VP of
AT&T Worldnet interesting. There were a number of things he said in the conference that weren't
showing up in the press releases.

According to AT&T surveys, the number one issue with the internet is
reliability. They are now going to measure internet access and
benchmark against other key ISP's (Compuserve, Prodigy, MSN, etc.)
AOL will not be included. They are not seen as competing as an ISP,
rather more as an online content provider with chat and email.

Reliability for AT&T averaged 94% during peak, compared to 89% for all
others. AOL in December was 37%. The reliability is when you call, do
you make your connection.

As far as pricing, there are no reductions in the way. As far as
marketing, they don't plan to "Carpet Bomb" with advertising.

And as far as people using the net for long distance calls, getting
around the toll booth is an issue that will be settled with the FCC
when they determine the access charges that should apply. Two
scenarios develop which make the most recent long distance deal with
AOL a little suspect. The first is some access charge for long
distance calls on the internet, the second is lowering current charges
to non internet providers.

Allen
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