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Technology Stocks : AUTOHOME, Inc
ATHM 23.03+2.3%3:59 PM EST
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To: ERM who wrote (3075)11/4/1998 9:37:00 PM
From: sillen  Read Replies (2) of 29970
 
America Online Inc., MindSpring Enterprises Inc. and other online and Internet service providers argue that At Home's bundling discourages customers from subscribing to
their services.

Well, first of all "Welcome to the way you do business in an free market; it's called capitalism." Of course At Home's services will discourage customers of subscribing to their services. At Home can provide X times content (streaming videos, near CD quality sound etc) at 100 times the speed of AOL and the alike.

And consumer advocates fear the bundled services will diminish
competition and possibly allow cable operators to restrain use of the Internet.

Under the Telecom Act of 96 Bells had to open up their networks to any kind of service to the newcomers, that is what unbundle your network mean. The proposed merger between AT&T and TCI will go in the other direction keeping the last mile market to themself. Of course AT&T wants access to TCI's network because of the "one-stop-shopping" carrot. The competitors are just worried that they won't have access to the last mile and they should be; I would be too.

I don't know if At Home has to unbundle their network or TCI if FCC decides to say so? Rather TCI has to open up their network for last mile access. Either way the FCC will open Pandoras Box if a decision is made to classify cable-cos as co-carriers/CLECs/LSP etc..

But let them decide...by the time they have decided what to do about the purposed merger At Home will have an even larger subscriber base;25%+

Later

Sillen
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