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Technology Stocks : America On-Line (AOL)

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To: James Fulop who wrote (24547)6/30/1999 6:42:00 AM
From: Mike Torrence  Read Replies (3) of 41369
 
Steve Harmon (who has a thread on SI) has mentioned a few times recently that AOL's stock performance has and will continue to be hampered by the lack of a cable deal. Case and co. appear to be touching all the bases with this one exception. It is my hope that AOL management has it's eye on the votes which are about to be taken in a number of cities across the country (LA and SF among them)regarding open access. Despite the FCCs apparent desire to let the cable companies monopolize the use of this electronic infrastructure these cities may well vote to require open access. If that happens I would hope that Case gets on the phone with Armstrong because the price of access will have dropped significantly. Then Armstrong and his colleagues have a choice:

1. Delay and continue to fight it out in the courts (expensive, everyone loses)
or
2. Begin negotiating price with the other internet providers.

I hope (there's that word again) that AOL's management is not simply digging its heels in and trying to effect open access through its lobbying efforts in Washington. I applaud AOL's decision to use every available option to deliver it's content but it's obvious to me we need a cable deal and I hope (three times now) that they're (AOL management) watching these large urban access decisions carefully and act sooner rather than later once these votes have been taken.
Mike
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