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Technology Stocks : AOL, now I get it

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To: Jinping Shi who wrote (127)11/29/1996 7:54:00 PM
From: Allen L. Axelson   of 496
 
Jinping,

Let's take these one at a time:

"But many of those 7,000,000 subscribers are already AT&T (say)
customers."

How many? What is the market share of AT&T? 60% This means
that if the AOL subscribers are evenly distributed, 60% of them
use AT&T already. That leaves over 2,800,000 that are on other
providers. (Quite a big number.)

"Is is easy to buy a domain and start an on-line service, or to
buy AOL if AT&T has no interest in advertisement business?"

Sorry, I don't know how to parse that question. Please rephrase
it.

"How many people really need those 5-in-1 service: phone, mobile
phone, internet, ...?"

It appears that a lot of folks think they need a lot of them including
paging service. For the life of me, I can't figure it out either -
but if they are willing to pay....

"If current blue-chip holders are doing to buy small companies in
the near future, what makes AOL a better candidate?"

AOL provides an information type service directly to consumers
across the country. They have a lot of customers. The internet
matches well with the telecommunication industry - they are all in
the business of people communication. The future of communication
has expanded to include the internet. Those look like very good
reasons for making AOL a better candidate.

al
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