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Strategies & Market Trends : ahhaha's ahs
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To: ahhaha who wrote (250)10/14/2000 3:25:40 PM
From: FR1Read Replies (1) of 24758
 
Do you think that it may be the case that the FTC and AOL are simply doing a last minute war dance over terms?

AOL may have a strong position.

The FTC thinks they are going to stop AOL/TWX from hurting the public by demanding open access on equal financial terms for all ISPs.

This is kind of the same problem that occurred with ATHM. When Portland was a hot topic, Portland City said that all ISPs should be allowed to have the same financial contract with T that ATHM has with T.

The problem with this reasoning is that this means all the ISPs must turn a sizeable amount of their stock over to T because that is part of the payment beneift that T has with ATHM. So somewhere down the line this would have had to be expressed in dollars (and T would come up with a big $ figure). Fortunately, T never had to do this.

IMHO, AOL has shown their strategy. They will fight but eventually accept terms of the FTC.

So all ISPs (including AOL) get treated equally.

Then AOL will demand an enormous sums for access, including a % of all profits made using their pipes. The FTC can't do anything unless they want to regulate prices (which would grind the whole system to a halt because it would become a government business).

AOL has already demonstrated this by telling some ISPs what they will demand and it involved a % of profits plus traffic charges.

T has already, very quietly, said that they agree with the AOL idea and may start charging a % of profits made using their pipe sometime next year.
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