AMERica on-Line, Another over valued company? Message Board

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Technology Stocks : AMERica on-Line, Another over valued company?

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To: bobferg who wrote (180)	7/22/1996 9:23:00 PM
From: Art Stone	of 222

As of July 1st, AOL is offering 20 hours/$19.95 (which won't be reflected in the yet-to-be-announced earnings). AMER is stuck with the problem facing all national internet providers - creating a nationwide dialup network is a very expensive business. AOL can't pay Sprint $1/hour (more ore less - only a guess) for a member's connect time and then offer flat rate $20/month access. On top of the access cost, AOL also has to pay for "content". AOLNet is probably less expensive for AOL than Sprint, but it still carries a price tag. The only method I can envision for AOL to offer flat rate is if it is access via TCP/IP (like the deal that was announced with AT&T a few months ago - where AT&T provides the modem pools, and AOL provides the "content")... However, I've read no further details about that since it was announced.

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