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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: AJ Berger who wrote (3063)3/13/1999 10:55:00 AM
From: MikeM54321  Read Replies (2) of 12823
 
Re: ADSL and AOL

SBC and AOL to roll out high-speed Net service--THE HIGHER-SPEED SERVICE, expected to cost current AOL users an extra $20 a month, allows for much faster Web surfing, constant and reliable connections, and use of the Internet simultaneously with a telephone or fax on a single line.

AJ,
You probably shouldn't expect to have to pay $50/month for your Ultra DSL service as soon as competition comes to your area. As you can see above, SBC is going to offer DSL service (in conjunction with AOL) for around $42/month. Nothing like competition to bring costs down. That's what I experienced when GTE had to compete with Time Warner (for cable modem service).

Thread,
This is the part that amazes me. AOL is now about $22/month for dialup analog service. So I wonder what kind of deal they could have cut with SBC to be able to be able to offer DSL services for only $42/month? Most DSL plans I have seen announced so far charge, at the minumum, about $50-$60/month. And that is WITHOUT cutting AOL in on the deal. I don't see how this can be profitable for SBC? Maybe it will be profitable when it reaches the million customer mark? Just amazing how much SBC is willing to give up to cut in AOL.

But, as was said before, it goes to show how AOL is a master of innovation. I even heard a couple of analyst last week even bring up the problems AOL faces in a broadband world. But look how AOL is already dealing with this issue. Interesting that RBOCs and ILECs don't have confidence to just go it alone. Can you imagine the ad budget they would have, not bringing in AOL in on the deal.

So is AOL going to cut a deal with every RBOC and ILEC? AOL never ceases to amaze me.
MikeM(From Florida)
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