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Technology Stocks : America On-Line: will it survive ...?
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To: Dermot Burke who wrote (8873)3/17/1998 9:48:00 PM
From: Investor-ex!  Read Replies (2) of 13594
 
Dermot,

Disintermediation -- yes! Unfortunately, the theoretical economics of the internet do not apply to AOL. Haven't you heard, AOL is the internet. :o)

Once again, FWIW, I just saw the first MCI ad on TV today (on FX) offering their unlimited internet access for $14.95. They EXPLICITLY state that their service is more than 30% less than AOL, and that you, yes you!, can save $84 per year over America Online.

Let the race (to the bottom) begin. That's the promise of the internet -- insane competition -- with each competitor having to earn its margins or perish.

Somedays, I imagine that phone companies will give away run-of-the-mill internet access as an inducement to use their other services. If AT&T, MCI, and Sprint are willing to cut checks for $100+ to individual residential long distance customers to switch back and forth, can free internet as a marketing ploy be that far behind??
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