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Non-Tech : Amati investors
AMTX 1.470-5.8%Dec 12 9:30 AM EST

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To: (no name provided) who wrote (6236)11/26/1996 4:04:00 PM
From: bill c.   of 31386
 
Engineer:

I hear what you are saying...

What will stop an ISP's like InterAccess in Chicago from expanding their ADSL service? They can lease the copper today,.... and again data internet access is different then voice access. ISP's don't need to pay minute calling charges for Internet access. This is why we can get unlimited Internet-access from AOL for only $19 a month. This was set in 1983, not with the 1996 deregulation bill.

25% two-way cable seems a little high.... I seem to remember about 5-10% is two-way.

<I think the deregulation will be a long process and till then there is virtually no competition or incentive for the telcos to pursue broadband access>

Can I ask how your came to this conclusion? I believe they have to pursue broadband access, not from a greed standpoint, but from competition from other technologies that are able to provide broadband access.

I'm under the impression that neither of us understand the full ramification of the deregulation bill. I see ISP's that are able to provide ADSL service... I see GTE that will start to roll out service mid97... I see all the RBOC's trialing ADSL... I see AT&T bypassing the local service provider with wireless... I see millions connecting to the internet... and the RBOC's don't see a need to get into broadband access business?... they have to. They have to generate an additional revenue stream that broadband services provides. I don't think the RBOC's are just going to sit around, waiting for competition. They see the possibility of broadband access and they will lead by example.

Something just doesn't add up.... can you give additional information on why the RBOCs don't have an incentive to get into the broadband business?
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