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Technology Stocks : AUTOHOME, Inc
ATHM 23.76+1.2%Nov 28 9:30 AM EST

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To: E. Davies who wrote (13493)8/5/1999 1:18:00 AM
From: RTev  Read Replies (1) of 29970
 
I'm still not sure where AT&T sits on this. If they dont believe in the ability of ATHM to bring in revenue from content why are they so steadfast against allowing "open" access?

They're so steadfast against it because they know they don't have the technology right now to provide it with acceptable quality of service.

But more fundamental is the locus of that regulatory battle. Cities and counties are assuming a right to regulate these extra services on the cable wires. T knows that they won't stop with cable modems. As soon as T starts offering telephone services over their cable wires, the same debate could erupt once again. You can bet that the local telephone monopoly will insist that T's cable lines should be opened up to competitive carriers. They will make the same arguments to the same jurisdictions.

And "why do they even own @home?" Because TCI owned @home. TCI and the other MSOs needed an outfit that could provide a level of networking expertise that was too far out of the realm of the cable guys. @home and RoadRunner were created to bring the partner companies technology that they didn't feel they could handle on their own.

I doubt that AT&T would have taken the same approach had they owned the same cable plant five years ago. They don't need @home for its technology. I suppose there would be some debate about whether they'd be able to do it right, but there's little doubt that AT&T would believe that it could, by itself, handle all of the technology issues involved in cable modem service.
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