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Technology Stocks : AOL, now I get it

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To: Dan Ross who wrote (261)	1/2/1997 12:32:00 PM
From: Joel Sternberg	of 496

> To all: I haven't been watching AOL for a while now but I must say that unlimited access for 19.95 or so is great and very consumer oriented. This week, I was in N.C. visiting my folks. I asked my dad about what he thought about the unlimited access for $20 or so. His words were "It's great for the customer but it CAN'T be sustained." My father works for a major telecom. equipment maker and is in charge of their switching business globally. He told me that the costs are so high that noone will survive unless they have a ton of cash left to push out the rest of the competition. He said that many will once again change their pricing within the next 6 months. Take a look at NETCOM. They recently announced they would be changing their pricing structure. This is just my opinion and a little tidbit of a father/son discussion. I hate to say it, but the old man knows more about this than just about 99.9% of the population and he is normally right. Good Luck to all Dan Ross< This would seem to hold true (inability to make money at $19.95 unlimited) unless you own the pipes. I never realized until a couple of weeks ago how much it actually costs to provide the service. Thanks for your post.

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