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Technology Stocks : AUTOHOME, Inc

ATHM 23.12

-1.4%

11:59 AM EST

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To: Profi who wrote (2793)	9/11/1998 2:52:00 PM
From: ahhaha	Read Replies (1) of 29970

The answer is there are many pockets where cable service hasn't reached. This is an opportunity for local or regional operators mostly non-MSOs (whatever they are) to get a foothold in the market. The underlying strategy is to groom the local market in order look inviting enough to MSOs, LD carriers, and RBOCs, in order to sell the system to them. It's a fixer-upper strategy and Adelphia, which is considered a dog operation, is one of the first to explore this strategy. Fixer-upper will probably fail without two way. In a way they don't have any other alternative since they can't go head to head with the main providers. They do have the possibility of providing broadband services rented in batch for a fee, but the fee will be passed on to you. If that occurs, the fee isn't a discouragement given what you'll get for the access. That all assumes Adelphia can afford to upgrade to HFC. One way won't do.

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