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Technology Stocks : America On-Line (AOL)
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To: Jeff Dryer who wrote (26405)7/22/1999 6:50:00 AM
From: Vendit™  Read Replies (1) of 41369
 
Jeff

Re:New subscriber growth (overall usage growth for Web Portals) is slowing and there is a threat from free ISP services that must be dealt with.

Speaking only from AOL's stand point, I don't see free ISP's in the as any viable threat in the US and believe the climate for their success is only present in the UK. As you probably know, even the so called free ISP in Europe still costs the consumer about $70 per month via local line usage charges.

There is a free ISP service offered in the US called "FreeWeb". Out of curiosity I signed up and downloaded their software a few months ago. The first thing that struck me as hilarious was the fact that FreeWeb uses NetScape as its browsing software so in affect a Freeweb account adds hit counts to AOL as well as adding e-commerce customers to its customer base.

The second thing I found was for whatever reason I was never able to get connected through the free service. It would dial out but would never connect. I truly worked on this for 2 weekends before giving up. There was no customer service that I could find.

I agree with you about a summer correction. My thinking is that a greater percentage of cash will find it's way back to quality companies like AOL as it comes back into the market.

Vendit
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