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Technology Stocks : AUTOHOME, Inc
ATHM 23.89+2.2%3:59 PM EST
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To: Frank A. Coluccio who wrote (10455)6/5/1999 12:10:00 PM
From: Benkea  Read Replies (1) of 29970
 
Frank:

"however, T's continued incentives to improve plant will be dictated by how they may or may not charge for carriage on their systems."

As an ATHM shareholder, it pains me to admit that T WILL build out the network regardless of open access. Open access just means T will charge all the ISPs the same $11.20 it gets from its' 70% ownership interest in ATHM. T really doesn't have that much in ATHM in dollars and T still gets its' 71% cut off ATHM's business collected from other cable networks. This investment in ATHM really is very inconsequential as relates to T's loyalty to cut its' head off to spite its' nose.

I live in Bellsouth country. Since Time Warner can't seem to get me Road Runner until early 2000, at best, I arranged for DSL installation next Thursday! Bellsouth has local phone service, digital tv, cell phone service, paging, and all the other goodies T envisions for its' bundling strategy except LD. T WILL upgrade with or without ATHM or the bells will beat it. Besides, T only gets $11.20 for each $16 ATHM gets and not even all of that comes from T's cable networks. So T will still get the $11.20 from ATHM off others' networks.

Unfortunately, T could give a crap about ATHM when it comes to T or ATHM.
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