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Technology Stocks : CDRD (CD Radio)

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To: Mark Marcellus who wrote (828)	6/11/1999 8:45:00 AM
From: John Gault	of 904

Hello Mark, your point about them having to fail I disagree with. I believe there will be a market for digital wireless, it just won't be in competition with a low cost satellite broadcasting company. Broadcasting by its very nature is much cheaper then two-way communication. The services digital wireless can provide will not only be too expensive to compete head to head with Cd Radio, their service coverage, for the foreseeable future, will be extremely spotty. "The point is that CDRD's value does not lie in the programming." That statement assumes that there will be direct competition for delivery of real-time broadcast to the auto. There will not be, therefore the content becomes the 'primary' issue. That is what consumers will be buying not the technogical gizzmos. What about shorting all traditional Am/Fm broadcasters because of this digital two-way communication. They're stinking tons of money into IBOC with plans of broadcasting the same signal analog and digital. That to me seems like the biggest waste of money!!! The benefits to such a service will be so small... the scale is the problem with fm stations. that 60 mile radius doesn't allow for a wide selection of music to be broadcast at a profit.

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