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Technology Stocks : America On-Line: will it survive ...?
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To: Eric Jorgenson who wrote (2465)3/24/1997 10:48:00 AM
From: John Howell   of 13594
 
Eric,

I doubt that AOL will be rid of "capacity" problems for a long time. The accepted standard for access providers is 8 or 10 users per modem. AOL's current ratio is over 50/1 (if you believe their subscriber numbers). Their stated goal is to acheive a 25/1 ratio near term, which they are touting as a level that will end their problems.

The problem with AOL is that they must grow to stay in business. Growth means that they must expand infrastructure AS GROWTH OCCURS.
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