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Technology Stocks : METRICOM - Wireless Data Communications
MCOM 0.00550-18.5%11:51 AM EST
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To: bak man who wrote (1319)7/10/1999 2:51:00 AM
From: Tai Jin  Read Replies (2) of 3376
 
Let me get this straight. Wouldn't you say that their service would be very successful here in the SF bay area? I mean this is a techno geek paradise so wouldn't everyone want this service? If this is one of the better markets for their service then why can't they make a profit? I read somewhere that they would have to charge a lot more than they currently do to make a profit (I read that a while ago). So how do you expect them to make a profit in other markets? Their competition is other forms of high speed network access. So I would grant you that the markets where they could do well in is the rural areas where there is no competition from other forms of high speed network access.

Your comparison with AOL is not entirely valid. AOL does not make money on monthly subscription fees alone (in fact, I don't think they would be profitable if that was their only revenue source). They make a lot of money from the advertisers and merchants who have access to those 18 million pairs of eyeballs. Does MCOM expect to be profitable just from subscription fees?

As I said in another response, as a technologist I like the idea of wireless networking. But the reality is that technology does not become successful just because it is a good idea. It becomes successful because there is a good business plan behind it, because it provides a useful and needed service, and because people accept it. So far I haven't seen any evidence of an explosion in wireless networking use in the consumer market (at least not here where I would expect it to be most prevalent). If you have evidence that says otherwise then I'd be happy to see it.

...tai
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