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To: drmorgan who wrote (13037)7/27/1999 10:21:00 PM
From: RTev  Respond to of 29970
 
I too would be surprised to see AT&T go as low as $20 for cable-modem service as a stand-alone package. I could, however, see them getting that low as part of a package that includes long-distance and/or wireless service. I would expect prices to drop that low once they start offering local phone service as part of the package.

I too pay about $47/month for broadband access. Since @home isn't available in my neighborhood, I get it as DSL. I'd love to pay less, but the bill is worth it to me especially since I save the cost of a second phone line. It would strike me as foolish to drop the price too low too soon.



To: drmorgan who wrote (13037)7/27/1999 11:29:00 PM
From: Jing Qian  Read Replies (4) | Respond to of 29970
 
Let's suppose @Home drops its price to $20/month. AOL is then forced to drop to $10/month. Do you think people will still choose AOL when they can buy something 100 times better for $10 more? I believe if AT&T/ATHM does decide to reduce price, they can instantly drive AOL as well as all of the rest of copper ISPs out of the market. I believe T can recoup the expenses by bundling the $20 @Home with Cable TV and everything else. I also believe that T will give @Home $10 just like it's receiving from the MSOs now. Bundling is the key to recoup the expenses.