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Technology Stocks : Network Solutions (NSOL)
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To: JC Reddy who wrote (1012)4/22/1999 6:59:00 PM
From: Boon  Read Replies (2) of 1377
 
JC Reddy, your analysis is not quite right -- that the fee has dropped from $35 to $9.

Don't forget that NSI intends to continue charging (domain name registrants) $35 a year. So that fee hasn't dropped. And it is still unknown how much NSI's competitors will charge registrants.

What is different is that, of the registrations above and beyond those registrations NSI makes, NSI will get $9 for each such registration.

That's bearish for NSI only to the extent NSI's competitors will take registration business away from NSI. And it's bullish for NSI to the extent that NSI competitors will register domain names above and beyond NSI's capacity to register domain names. That represents additional revenue.

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