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Technology Stocks : America On-Line (AOL)
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To: George Martin who wrote (17712)5/19/1999 9:10:00 PM
From: John F. Dowd  Read Replies (2) of 41369
 
GM: T made a good move. The Bells were not going to give T the freedom of action that T would like in terms of bandwidth etc. The access charges are an enormous burden and so are the federal taxes on each telco. wire. Cable gives T an exclusive access and Kennard is leaning toward a hands of policy where ISP's will have to compete through ADSL. The speeds are quite similar. The only question regarding T is how fast can he get his broadband equip. in place. AOL has no control over ADSL they can only wait for RBOC's to move in their typically glacial manner. AOL has little control over the introduction of the technology. In fact most of their POP's are rented and therefore they have almost no control. It will be an interesting race. Bottom line Jubak is wrong T will prosper as they will generate great value added from each of the pipes they bought i.e. pay per view,phone,servies that store video and store records for corps etc. but to do so they will have to execute.

JFD
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