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Non-Tech : CRTM - Curtis Mathes

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To: Joe Barker who wrote (7)	10/13/1997 5:55:00 PM
From: Joe Barker	of 25

Despite recurring losses for Netcom in the last quarter, this ISP company was offered $283.5 mil today. In April, the company's dial-up service flat fee for new customers increased from $19.95 to $24.95, as part of its transition to the business market from the consumer arena. The flat fee still generates the majority of the company's revenue--about 85 percent in the past quarter. Netcom did not believe it was possible to provide high-quality service on $19.95 a month, their emphasis is on enhanced services. Instead of trying to be the provider with the most subscribers, they put money into network quality and services. The point of mentioning Netcom, is the fact that some larger ISP companies are being sold for 300-400 times their customer base whether or not they are making a profit on this service. Other ISP are selling for 5X monthly subscription fee. If Curtis Mathes could expand and increase the numbers, regardless of the overall size of the customers base, any increase in ISP users besides just relying on the uniView, will only enhance the worth of CM that much higher.

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