AT&T has the band name recognition. What's more, it has the network structure, the distribution, and advertising agencies. People switch long distance companies to save $150 per year. So what should AT&T do? Print on the monthly bills: $9.95 flat fee for unlimited Internet access, saving $120 per year over America On Line. It should be able to sign up 10 million subscribers in 6 months, easily.
Here we go again. So, another gorilla that is supposed to wave its magical wand and poof AOL is stardust. This argument sounds so familiar, wait, I think maybe it was MSFT and MSN? MSFT is a cash cow, and yet they don't seem to follow your strategy. If I can recall, AOL has them beat by about 10 million subs. 10 million subscribers in 6 months? There is already FREE internet access. You think they've signed anywhere near 10 million? Not even remotly close!!!!
AOL had to spend millions for advertising, sending out free floppies. AT&T can do it cheaper and better. Did you say 'content'? Fork over $100M to Yahoo! and C|Net and presto! Content.
So, what your saying is that right now T is doing it dumb and dumber. Because T does have it's own internet service, does advertise, and still doesn't come close to AOL. But somehow, they can do it cheaper and better. As for content, Yahoo! and C|Net are established internet sites. They are not T branded content. When you say the content is the web, all T would be is a ISP.
What will the market bring today....
S. |