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Technology Stocks : AUTOHOME, Inc
ATHM 20.67-0.3%Feb 5 3:59 PM EST

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To: drmorgan who wrote (13037)7/27/1999 11:29:00 PM
From: Jing Qian  Read Replies (4) of 29970
 
Let's suppose @Home drops its price to $20/month. AOL is then forced to drop to $10/month. Do you think people will still choose AOL when they can buy something 100 times better for $10 more? I believe if AT&T/ATHM does decide to reduce price, they can instantly drive AOL as well as all of the rest of copper ISPs out of the market. I believe T can recoup the expenses by bundling the $20 @Home with Cable TV and everything else. I also believe that T will give @Home $10 just like it's receiving from the MSOs now. Bundling is the key to recoup the expenses.
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