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Technology Stocks : America On-Line: will it survive ...?
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To: Art Stone who wrote (2890)4/19/1997 4:25:00 PM
From: Todd Daniels   of 13594
 
>When ADSL or some other similar technology finally arrives, even the
>56kb modems will become as useless overnight

The modems will have been fully depreciated *long* before ADSL or whatever achieves any meaningful penetration.

Further, I wouldn't doubt that BBN's lease deal with AOL has BBN
fully covered, just like the trems for leasing a car cover the
dealer against the loss of book value over the life of the lease.

So, the risk is all AOL's.

What's important is that it seems AOL is having to spend more
than originally anticipated to cure the overload. Make sense.
Usage at flat rate does tend to expand to fill the capacity available -- especially when so many users were having problems getting on
in the first place.
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