To: Jeffrey D who wrote (1107 ) 6/10/1999 11:28:00 AM From: Glenn Petersen Read Replies (1) | Respond to of 3519
A lot of good posts this morning, including the one from Dale. I am in complete agreement with your observation that the biggest threat to the free ISPs is a change in the regulatory environment. I would also suggest that some sort of change is inevitable; European governments, already concerned that Internet development in their countries badly lags the U.S., are going to be inclined to do everything they can to encourage use in their countries. While the entry of DELL, MSN and others does validate the free ISP concept, the economic model for the European ISPs is going to have to evolve into one that is more advertising and value added based. While they have not yet decided on a definitive strategy, Business Week is reporting in this week's edition that AOL is thinking about going with a two tier service in Europe, one which would be a free service and the second that would include all of the normal "bells and whistles." To their credit, XSNI seems to be adding the "bells and whistles." JD's home page is a good example. (JD, are you a "bell" or a "whistle"?) Your observations on branding and customer loyalty are also right on the head. I feel that second tier ISPs can survive in the competitive market that is developing in Europe, but will only do so if they remain imaginative and flexible. XSNI appears to be reasonably nimble. XSNI also has the advantage of having achieved a certain critical mass and they can build on that if they can successfully develop and promote their service. Which brings us back to the "mystery meat" issue. Development and promotion need to be funded and as of yet we have no hard evidence that XSNI is going to be in a position to build on their success to date. It is absolutely amazing that the company has done nothing to disseminate any hard data. Hopefully, that will change over the next couple of weeks. XSNI has a short window of opportunity to position themselves as a long term player in Europe. A quick and successful financing, and the disclosures that go with it, will go a long way toward making that happen. I think that most of us posting on this board are aware of the risks associated with this stock. The level of my investment in this stock is not going to make or break me. If nothing else, it has provided the intellectual stimulation that comes from watching a market (free European ISPs) evolve at the speed of light. Sorry for the ramble.