Ascend Communications (ASND) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND)

ASND 212.82

+1.4%

10:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kenk who wrote (34070)	2/9/1998 4:08:00 PM
From: Gary Korn	of 61433

AOL increases rates and brings in some price stability for internet service >> other ISPs find they can slightly increase their rates >> Revenues increase with no additional costs >> more revenue equates to more cash that they can use to finance additional infrastructure >> ASND and competitors benefit from additional business from the ISP segment. Any comments on my ridiculous speculation???? kenk, Not ridiculous at all. I think one reason the ISPs are so tapped-out (cash poor) is because competition has driven down the rates they can charge. If they can bring in more money, for sure they will spend some on infrastructure. Mory said in Scottsdale that ISPs were tapped-out, one reason for the flat RAS/RAC market. Arguably, higher rates might deter some consumers (hence, depress any increase in demand by prospective internet users). However, in this case, I think the $2/per user increase readily will be absorbed. Bottom line: The revenue gain from the $2 increase should more than offset any customer losses. Gary Korn P.S. My own ISP is in bankruptcy. A rate increase can only help.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next