Major differences between ATHM and UMG. As you point out, UMG is not reliant upon partners. That is, ATHM is apparently solely an ISP, riding on upgraded CATV facilities. Only 8% of its ownership is being floated in this IPO, the rest held by its major suppliers. UMG, under the brand name MediaOne, is more vertically integrated, as it owns the network as well.
UMG's technology is somewhat different than ATHM's partners, in a significant way. UMG is installing switches, with the routers as adjunct processors in many markets. They are utilizing their networks to provide switched, full-featured telephony, as well as internet access. Economies of scope, as well as scale. |
