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Technology Stocks : AUTOHOME, Inc

ATHM 23.81

-1.1%

Nov 17 3:59 PM EST

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To: gpowell who wrote (14463)	8/14/1999 12:27:00 PM
From: E. Davies	Read Replies (3) of 29970

Evidence has suggested the subscriber growth rate is directly limited by the number of qualified installers. If true then this can be remedied by an infusion of cash to hire and train installers I've heard this argument before and am glad for the opportunity to refute it. First, open access as defined by Opennet and the politicians does not give an "infusion of cash". They merely want to pay $x/month for access to the lines. There has been no proposal that the ISP's pay an "entry charge" to help build the infrastructure. Second, there are some things money just cant fix and can only be fixed with time. You really think AT&T does not have the cash to hire some installers? How much did they spend on TCI and UMG? Around $100 Billion I think, plenty of it in cash. In addition they just got a $5 Billion infusion of cash from Microsoft. The advantage is any number of ISP's can coexist by using the same infrastructure. Under your senario what limits an ISP from not overloading the common network? I know you propose each user have limited bandwidth (an idea the public wont go for), but what is to stop them from selling more bandwidth than the lines can handle? If ATHM would provide ISP's services and also network infrastructure to the other ISP's then you have a conflict of interest. The way conflicts like this get resolved is regulation and price controls. Not what you were aiming for I bet. Eric

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