Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 201.40

+2.3%

Dec 10 3:59 PM EST

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To: kenk who wrote (34070)	2/9/1998 4:38:00 PM
From: Gary Korn	Read Replies (3) of 61433

AOL increases rates and brings in some price stability for internet service >> other ISPs find they can slightly increase their rates >> Revenues increase with no additional costs >> more revenue equates to more cash that they can use to finance additional infrastructure >> ASND and competitors benefit from additional business from the ISP segment. Any comments on my ridiculous speculation???? kenk, I just want to respond again to your brilliant observation. Think back to when the ISPs began their price war. Wasn't it after that that RAS/RAC demand flattened? Heck, we could have predicted then that it would be bad for ISP suppliers and, in fact, RAS suffered down the road. (How many ISPs, by the way, have leased equipment, and therefore have iffy lease payments to the likes of ASND.) If there is any chance that ISPs nationwide can raise rates, that simply has to be good both for new equipment purchases and for the ability to make payment on old purchases. Importantly: What would be the nationwide revenue impact of a $2/user revenue increase? That would be a helpful piece of information (to assess what funds might be available for capital purchases). Gary Korn

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