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Technology Stocks : Internet Analysis - Discussion

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To: jhg_in_kc who wrote (101)2/3/1999 10:32:00 AM
From: MaryinRed  Read Replies (1) of 419
 
Remember when AOl could not handle all the new subscribers...and the added time people....where spending online..when they went off (Per hour charges)..

well...that was because...they did not have enough:

Hardware: servers, routers, switches
Communications: phone lines, modems
Personal: help desk, technicians
Look at anything that one has to "invest in" to produce the product/service.

What is lovely about AOL is they are not only building their subscriber base...but they are "casting off" expenses...
BYOA allows them to serve more people with fewer hardware/modems, etc
Those 4.0 cds allow them to use fewer help desk folks...and with faster, cleaner setups...people can get off and on faster....(thereby not tying on the system with the "on/off" process...more time to "eyeball" ads.

And what I particularly love...is they are reducing to "zip" the cost of their "content"...because companies/people are "paying" aol to be on their "online service"....so a cost center has become a "profit center"...

doesn't get much better than that!! ...for "mucho bucks!"

big smile....mary
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