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Technology Stocks : AUTOHOME, Inc

ATHM 23.48

+1.2%

Nov 21 9:30 AM EST

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To: RTev who wrote (8579)	4/24/1999 11:26:00 PM
From: Jing Qian	Read Replies (2) of 29970

Is FCC really that formidable to AT&T? I don't think so. All indications seem that FCC will not do anything to interfere with AT&T's plan. Even with the merger of RR and ATHM, FCC would not really want to interfere. FCC's desire of having AT&T create real competition to the RBOCs is stronger than the displeasure of seeing AT&T becoming a monopoly. Plus, cable modem is still in the nascent stage with less than 1 million subscriber, no matter what T is doing, it hasn't become a monopoly yet. FCC wants to see AT&T cause a big dent to the RBOCs before they will start to regulate. FCC's only desire is to correct the wrongs of the 96 Telecomm Act. So, you guys don't need to worry too much. AT&T has everything planned out. They will buy MediaOne to solidify their position, but just enough not to exceed the 30% dominance. They will also merge RR with ATHM at a later stage when all the dust settles. AT&T seem to know that the government will not interfere at this stage. AT&T can afford to be a bad boy. What is important to FCC is not making the same mistake as big as the 96 Telecomm Act. They want to save face this time.

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