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To: gpowell who wrote (14407)	8/13/1999 8:17:00 PM
From: gpowell	Respond to of 29970

Restructuring of ATHM. ATHM would be split into two or more divisions. One concerned primarily with the network infrastructure and the other an ISP providing content and services. Cable COs' future role in a broadband structure. The Cable Cos. must give up control and ownership of ATHM. They will be compensated directly for the shares they relinquish. ATHM would also agree to restrict it's services to Internet data services only. Leaving VoIP and the traditional analog and digital broadcast TV to the Cable Cos. ATHM would simply be competitively leasing X MHz of bandwidth from the Cable Cos. Eventually the Cable Cos. can sell more and more bandwidth until they truly are just a dumb pipe - with few if any embedded services. The potential increase in subscribers, partially bankrolled by other ISP's, tiered pricing structures, and cuts from "fee for services", will result in increased revenues for the Cable COs far beyond levels achievable under the current model. Eventually the demand for bandwidth, with the potential further increases in revenue, will force one distribution system or another to start laying pure fiber to the home.

To: gpowell who wrote (14407)	8/13/1999 10:42:00 PM
From: gpowell	Read Replies (3) \| Respond to of 29970

3. The quick bandwidth saturation of the last mile. This can be controlled by tiered pricing structures that will facilitate competition for greater bandwidth carrying capabilities. Eventually the customer will obtain more and cheaper bandwidth quicker than could be possible in the anti competitive situation which exists today. Expanding on #3. Assuming nominal node size is 500 and penetration rate trends to 25%, by 2001, then local loop will have 125 users. 30mb/s bandwidth can be partitioned into 4 tiers of service with maximum transfer rates set. The four tiers should reflect currently available DSL speeds so that the Cable Cos can set the penetration rate which best balances revenue with QoS. Bandwidth tiers max. rate (kb/s) (not guaranteed at all times). Tier one 128K Tier two 256 Tier three 512 Tier four 1024 As open access matures and apps which leverage broadband technology are created the cable cos can begin to increase the bandwidth by implementing schemes such as the mini-fiber nodes or allocating another 6Mhz channel. Assuming RBOC's and wireless companies are implementing similar bandwidth increasing programs then the customer should see steady increases in bandwidth while maintaining QoS regardless of the distribution system. Let's face the facts - for those that have @Home the download speed is great but the experience is lacking the richness one imagines prior to getting the service. This will change for the better as open access is implemented.