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Technology Stocks : America On-Line: will it survive ...?
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To: Sam who wrote (8836)3/16/1998 8:08:00 PM
From: Chuck Williams   of 13594
 
Everyone loves the idea of broadband, because everyone loves bandwith. Now, it is true that you don't have to dial up, you are logged on 24/7. What everyone fails to realize is that once this technology grows and reaches mass media size, bandwith will dwindle. Everyone always brings up busy signals with AOL - the reason is bandwith! If AOL only had million subs, you would never get a busy signal. The only other option is building out the network, which AOL has done.

Plus, broadband is not some panacea of 100% uptime. Cable systems can and will fail. I've used Cox, and on more than one occasion I've had problems. DSL technology is just starting to grow, and to be sure there will be problems.

I believe this is an issue, albeit significantly less of one than for dial-up users. I guess I'll feel comfort thinking they'll remember what companies like AOL went through and learn from their predecessor's mistakes... 100% uptime is fantasy, but that's not my point. My point is that it'll be easy for people to use -- that's the critical issue.

. AOL will leverage its position and use broadband to its advantage.

So what is their plan ?????? It'd better be good.

I think I'm going to buy puts after it splits.

Chuck
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