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To: E. Davies who wrote (11102)	6/12/1999 5:13:00 PM
From: Lynn Heffelfinger	Read Replies (2) \| Respond to of 29970

E.Davies, I should have better clarified what i meant by splitting the toll. As you stated TCI/AT&T will get a 'local' toll for access over HFC from headend to the home. My cause for concern was the residual 35% of the cable bill. For example, 65% or roughly 35 dollars of a arbitrary 50 dollar cable bill goes to TCI/AT&T for local cable access. The remaining 35%/15 dollars goes to ATHM in its dual roles as an ISP and as the owner of "Tier-One" internet access. My original (and poorly stated) question was how much, if any, of that 15 dollars would go to AT&T given the fact that AT&T owned the backbone and was leasing it to ATHM. After consideration it seems pretty obvious to me now that ATHM keeps the entire 15 bucks. They have already paid AT&T 45 million to lease the OC-48 lines. So if the court's decision is not eventually overturned, and AOL becomes an ISP provider over the ATHM network, ATHM loses the ISP fees, but keeps the its private 'network' toll. What percentage of the 15 dollars this ATHM network toll amounts to is an interesting question. Will ATHM get 5 dollars a month for an AOL subscriber, 10 dollars a month?? Whatever the percentage, the main point is that ATHM is not excluded from the revenue stream even when another ISP steps in. That was my initial worry when i heard about the ruling last week.