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Technology Stocks : ADSL (G-Lite) for dummies - AWRE,PAIR,ORCT,ASND,COMS,NN
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To: Ted Gregg who wrote (94)12/21/1998 6:23:00 PM
From: Hank Stamper  Read Replies (1) of 201
 
ADSL overtake cable internet connections?????

No way. Not here on Vancouver Island, anyway. I just checked with my ISP and BC Tel (British Columbia Telephone; 2nd largest tel co in Canada) and learned that I can get an ADSL for $65.00 per month with a $99.00 installation fee. My local cable company (Shaw) charges $39.00 per month for an internet connection. I don't know what, if any, installation fee the cable company charges. (Canadian denominated funds.)

I do not know why I would want to give the phone company $25.00 per month more for a service that may very well be slower.

My cable company is aggressively marketing their internet connection with gobs of 1/2 hour infomertials on my TV, daily. I had no idea that BC Tel offered the service and had to track it down through my ISP.

If BC Tel is to compete, it will have to match price and advertise aggressively. This is only one small market relative to the world, but if this is the situation elsewhere, the prospects for sales of ADSL hard and software do not look good to me. What is the situation like elsewhere?

From an investor's perspective, owning shares in a company (or sector) that,
1. Was not first out of the gate,
2. Not aggressively fighting for market share,
3. Provided a slower data transfer rate (I know, this is arguable), and
4. Had a price structure 30%+ higher than competition,
is not a good investment.

Comments?

Ciao,
David Todtman
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