I don't understand why open access to ATT cable services is an issue to the ATHM business model.
ATHM is not an ISP. ATHM sells services to cable companies, who then act as the ISP to the end customer. For example, in Canada ATHM sells high speed connectivity to ROGERS and SHAW cable, who cover the majority of the Canadian cable market. Rogers and Shaw then sell internet access services to subscribers.
ATT invested in ATHM, but ATHM is not dependent on ATT for subscribers. ATT will take the same position in the business model as Rogers and Shaw and will sell internet access services to its cable subscribers. ATT, as a major investor, will use ATHM internet connectivity for its cable services. But, in the event that open access is provided through the ATT cable head end, ATHM will still get it's subscriber fee. In fact the more open the use, the more business ATHM will garner.
So, while this may cut into ATT margins, where is the down side for ATHM?? |
