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Technology Stocks : America On-Line (AOL)
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To: Joe S Pack who wrote (15803)5/8/1999 7:58:00 AM
From: ChinuSFO  Read Replies (2) of 41369
 
This debate of cable vs. DSL/phone lines. Currently there is a bill floating around in Congress to make broadband cable a open medium for use by everybody.

First off, ATT would have to invest huge sums of money to bring cable to every home and make it comparable to the reach of telephone lines having access to homes. Just acquiring a few companies does not make it a giant that it once was with the telephone lines. So will Congress pass the bill to make it a open medium? Heck, NO. Cable broadband has not yet reached those levels when it is considered as widespread and as vital to the nation as telephone lines are.

On another note. It is an established fact that cable slows down in the face of a large number of users whereas DSL slows down as the point of use goes further away from the exchange. So even though AOL is negotiating "bulk rates" for ATTs cable, the question is can the ATT cable lines support the traffic volume of 18 million of AOL users at the desired speeds?
My suggestion is not to get caught up in this hype over broadband, telephone lines etc. Old is still gold. Good old telephone lines for now. AOL Everywhere is the way to go. AOL access from radio modems, T1 lines at work, laptops, palmtops etc. This I believe is AOL's current goal and that is the way to go for now. The brilliance of Steve Case and his team.

Also a few large funds have sold AOL and pocketed their profits. I do not expect fund managers to be a long term investor on any stock. They set a profit goal for a particular stock. When that profit goal is reached they sell and that is what they did with AOL. I don't think it has anything to do with "AOL sidelined in the broadband game" theory that people are talking about.
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