EarthLink Network ELNK Wraps Your Fish Message Board

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Technology Stocks : EarthLink Network ELNK Wraps Your Fish

ELNK 5.630

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Mar 8 4:00 PM EST

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To: Jon Tara who wrote (49)	5/5/1997 8:51:00 PM
From: Garry Betty	of 220

Dear Jon, I agree with your comments above with a just a couple of exceptions. One of the big negatives of doing an @home deal is that they are asking for a 6 year exclusive. I don't know why Cox and Comcast agreed to such crazy stipulations but ... what can I say. What's even more interesting is that I know the CEO of Cox Cable personally and I get the impression he doesn't know that for at least a while he has signed his life away. Our service is customizable to some extent but we are not interested in creating content on our own. In the case of Charter we will be co-branding a site which allows EarthLink to maintain an important identity as this service develops. One of the neatest things about this deal is that we will be marketing the service directly to current members of EarthLink and Charter will be doing the same to their cable customers. I am kinda excited about the possiblities. Your assessment of "router" guru's is right on particularly in the case of hybrid solutions. We do a lot of black magic to make the dynamic allication of IP addresses a reality. The full duplex scenario is more interesting in that an unlimited use policy for a continuous connection to the Intenet is economically unfeasible. One of the biggest variables to our cost structure is the bandwidth used to connect our members to the Internet. Our cost is a function of the average bandwidth consumed of these dedicated circuits ...and they are quite expensive. The way pricing shakes out with these services will be most interesting to watch. We do, indeed, hope to replicate the Charter situation in other markets and have dedicated a few resources to accomplish this expansion. For us, our cost basically are a wash in that we can more cost effectively market to the potential customers and most of our other costs are similar. As for "Sky and his ego". This is an open forum and everyone is afforded the opportunity to voice their opinion. I appreciate your honest feedback and will certainly take it into consideration as we plan for next years annual report. cgb

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