Rhythms NetConnections Inc. (RTHM) Message Board

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Technology Stocks : Rhythms NetConnections Inc. (RTHM)

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To: Bill McCullen who wrote (48)	4/8/1999 6:52:00 PM
From: Bill McCullen	Read Replies (1) of 378

Just saw some numbers from ML in Steve G's post. One jumps out at me - ML excpects 36,000 subs by YE00. With a valuation of $6.4B that equates to $178,000 per sub. Makes sense, right? The other one that jumps out at me is I don't see any price erosion factored in and we all know prices will fall FAST just like they continue to do for LD and Cellular and like they did for Internet Access a few years ago. The MSOs are charging $39/month for cable modems, if the DSL CLECs ever want to play in the mass market they will have to do likewise or better given their reduced speed. Granted they should be able to exact a premium to cable modems in the business market but for how long? With these kind of valuations, your average Baby Bell should carry a market cap in the Trillions since they OWN the access. Bill

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