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Technology Stocks : AUTOHOME, Inc
ATHM 23.68+1.3%3:13 PM EST

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To: ahhaha who wrote (13193)8/1/1999 12:14:00 PM
From: Frank A. Coluccio  Read Replies (2) of 29970
 
Maybe the $20 rate would open up the demand floodgates and precipitate scaling problems.

Scaling problems already exist in more ways than one. Implementation itself is one issue where scaling is hampered by manually intensive practices (truck rolls, fidgeting with PC controls, desktop nuances, etc.). Then there are the inevitable problems associated with scaling the "quality' of the service in many, if not most, areas, where the latest segmentation schemes (which are still in the trial stage) have yet to be effected in the real world. Once the trial results are in and approved, I think it's fair to state that improvements will be years into the future before a revamped environment is in place.

This, immediately after tens of billions will have been spent achieving goals which were grossly shortsighted from the outset. What I'm referring to is the prevalence of 500 to 2,000 home segments, where more reasonably there should be no more than a couple of hundred, at the most, and optimally, down into the tens of homes per segment under the current topology and protocol rules. That is, of course, if the cable modem form of Interet access is ever expected to deliver anything more than e-mail and casual surfing features [downloads, news, limited transactions, etc.] in the future.

To the extent that the higher price stems the flow at this time, therefore, I think your assessment about scaling is accurate. But, for more poignant and deeply rooted reasons than your initial message stated or implied.

Regards, Frank Coluccio
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