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Technology Stocks : AUTOHOME, Inc
ATHM 20.73-1.0%Feb 4 3:59 PM EST

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To: E. Davies who wrote (23776)7/21/2000 10:46:57 PM
From: GraceZ  Read Replies (1) of 29970
 
the MSO's will need to spend $375,000,000 next year on truck rolls

Sounds like somebody has themselves a nice little business plan. The guy who hooked up my CATV was a subcontractor for Comcast. He said he gets paid per install, but he didn't say how much. If it takes 1/2 an hour or 4 hours he makes the same amount of money. He said he used to do @Home installs but he stopped doing them because he couldn't make enough money. This concerned me so I asked him why, "Was it the software or hardware, was it too hard to setup?" No, he said it was because everybody had out of the way places where their computers were situated and he had to run too much inside cable! Now how many people run their own cable all over the house (it ain't brain surgery)?

Comcast would have let me do my own install for @Home software but they still would have had one of their guys come and switch something where my cable service comes in (I'm assuming applying the filter and testing the line). I chose to have the guy come because they were offering it for free....so why not? That way I got to talk to the guy and do a little research. I'm assuming once they have a back log of installs (think the six weeks it takes to get DSL) I'm sure that the "free" install is going to disappear.

Even so, they spend $75 per install (your estimate, not mine) either with their people or some independant (supposedly they charge a subscriber $150 to install, so this looks like $75 profit)... then they have a revenue stream in perpetuity. A small price to pay. AOL paid a lot more to carpet bomb us with coasters and disks.

There are a zillion service companies out there that will take up the slack. Think of all those companies that do onsite computer repair.

The hold up isn't truck rolls it's that people who want the service don't have a node in their neighborhood. I hear this over and over again.....waiting for @Home. This is soon to be a problem in the past because as each area gets upgraded it's like a connect the dots picture. After you connect the dots you color in the picture.
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