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Technology Stocks : AUTOHOME, Inc

ATHM 23.75

+0.1%

Dec 1 3:59 PM EST

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To: Larry Zenith who wrote (13075)	7/29/1999 3:36:00 AM
From: RTev	Read Replies (1) of 29970

If @home is widely available here in Seattle, I don't see why people want to pay $80/m for 144K always-on Covad DSL connection instead of $40/m for 1M always-on TCI@Home cable connection? The more significant competition to @home around here comes from US West and GTE, both of which offer 256+ DSL for about $45/month. It looks on first glance to be slower than @home service, but it doesn't turn out that way very often. I have DSL now from US West. I thought I'd use it as a stopgap until @home showed up in my neighborhood, but I'm not so sure I'd switch anymore. For one thing I'd end up paying more for @home since I don't currently have cable TV. What Covad's ISP partners are saying is that they provide guaranteed quality of service. One of the Covad ISPs promotes their service to hard-core gamers: speakeasy.net Would @home service put them out of business if it were widely available in the same areas? I doubt it. If the Covad-partnered companies actually do provide the level of service they claim to provide, then they're providing a premium over the premium service of @home. It's an example of service that some people are willing to pay for. Another difference that's worthwhile to some but not others is that both the telcos and Covad allow folks to run web servers and any other kind of thing they want to put on the connection, which @home does not allow. DSL also allows for easier home or business networks without the security concerns that plague some cable systems.

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