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Technology Stocks : AUTOHOME, Inc
ATHM 23.64-1.3%Nov 19 3:59 PM EST
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To: Jing Qian who wrote (14403)8/13/1999 6:16:00 PM
From: gpowell  Read Replies (2) of 29970
 
The one network paradigm (ATHM's network model)

Under ATHM's "one network" paradigm open access would mandate that they share their capabilities with all ISP's. The structure is quite simple: from the headend back ATHM would own the infrastructure, including the leased backbone of AT&T, with the last mile owned by the individual Cable Cos.

ISP's would link their systems to ATHM's backbone. The regional data centers and caching computers would inherently share their resources based upon demand from each ISP.

A customer would them be free to choose their own ISP - the cost to access the network coming bundled with the service. Since content and services would not be dictated to customers by ATHM this form of open access should be acceptable to all parties.

While content and services would be dictated by the market place the network capabilities would not. In essence ATHM would have a private broadband structure that could be considered by some interpretations to be monopolistic. In reality this is not true since any private company could strike a deal with the Cable CO's and set up a rival private network.

I believe it is the best interest of all parties for ATHM to renounce their exclusive agreements with all Cable Cos. and immediately implement the one network paradigm.

Immediate repercussions of this decision will be:

1. The end of the open net coalition.

2. The infusion of cash from other ISP's which can be used to increase the install rate.

3. The quick bandwidth saturation of the last mile. This can be controlled by tiered pricing structures that will facilitate competition for greater bandwidth carrying capabilities. Eventually the customer will obtain more and cheaper bandwidth quicker than could be possible in the anti-competitive situation which exists today.
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