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Technology Stocks : America On-Line (AOL)
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To: tang who wrote (4417)2/5/1999 6:12:00 PM
From: RTev  Read Replies (1) of 41369
 
If dial-up is free for all, the local phone companies might as well
take the advantage and do it themselves

At least one RBOC (local phone company) has aggressively entered the ISP market. USWest.net offers dialup through much of their extensive territory and high-speed ADSL in the bigger cities.

But there's no advantage to them to give away their service since they are a true ISP which means they have no way to get money from advertising. Remember that AOL is something much different than an ISP. It is a proprietary non-internet network that offers access to the internet as one part of its service. Because it's a proprietary network, AOL can force its users to see ads -- something an ISP can't do.

AOL shoud team up with all
local phone company to do this free dial-up and share the eyeball
benefits through the AD dollars.

Maybe. But if it means local phone companies lose subscription revenue through their own ISP, then they don't have much reason to do that kind of thing.
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