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Technology Stocks : AUTOHOME, Inc

ATHM 23.48

+1.2%

3:59 PM EST

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To: E. Davies who wrote (14471)	8/14/1999 1:17:00 PM
From: gpowell	Read Replies (1) of 29970

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. Don't confuse the "open access" debate over the open access proposed here. Open access in a competitive market place is what is best for ATHM. It will be necessary for them to break out of the box that the MSO's have put them in. Simply put the MSO's put their 6MHZ channel up for competitive bid with some constraints as to how that bandwidth is partitioned to individual homes. In addition the bid winner must be able to provide some level of QoS consistent with maximum customer approval and thus revenue generation. 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. AT&T has only recently merged with TCI, but yes I believe T does. And your points are right on. It is pure speculation on my part that the install rate is limited by the MSO's reluctance to hire and train temporary installers. This is a valid assumption however. In any case for the purposes of creating competition, which also allows ATHM to be freed from the yoke of the MSO's, open access must be implemented. Once ATHM is free to pursue offering services to other distribution systems their growth will not be limited by the MSO's.

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