America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: Smart Investor who wrote (5684)	2/24/1999 12:50:00 PM
From: tang	of 41369

If you buy a Gateway pc and the free access of internet is not a local connection, you'll pay much more on the phone bill than the monthly ISP fee. There are a lot of ISPs around me, they offer cheaper monthly fee or free access, but none of them has my local number and I live in a 200,000 people neighborhood (local calling region). AOL has most areas covered in the USA with local phone hubs after many years establishment, it takes time, and it costs money to buy and set up the hub, small ISPs cannot afford, PC companies don't have their own hubs. The day that all PC companies go into free access and team-up with all phone companies, everyone has a local number available for free internet access is the day AOL must worry. But then AOL's revenue may depend on ISP fee for 10% and 90% from adv. and e-commerce. And phone companies must be willing to lose all their ISP's fee as revenue and take NO fees from the PC companies but upgrade their system for accepting all the freebies (maybe write-off as chairity for tax purpose). And ATHM and other cable companies go dead way before AOL. AOL's management is a smart bunch, they'll figure something out before investor bailing out.

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