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To: Mike Buckley who wrote (118)	9/5/1999 3:17:00 PM
From: RTev	Read Replies (1) \| Respond to of 1817

[Interesting thread, Teflon.] The cable providers are also content providers. The xDSL providers are not; they sell to the content providers and to ISPs that offer no content. It seems so difficult to generalize since there are so many varieties among providers of both cable and DSL. Even though many of them -- TWX and Cox as prime examples -- the cable companies aren't yet using their infrastructure to feed dedicated content to their users. Their content is, mostly, internet media available to anyone with a connection. They do, in general, provide email and news servers as part of the connection, but not much content. Some DSL providers actually go farther than the cable guys as content providers. Here's an example of the content sold by an ILEC, Cincinnati Bell: company.zoomtown.com Even when they don't go that far on the content side, all of the ILEC's provide an option for the same kind of email+news+web-hosting services that are provided by @home. Stick in the name of an RBOC along with ".net", and you'll find an ISP. (http://www.bellatlantic.net/, for example.) Users of DSL usually have a choice to go to another ISP, but the costs are often higher. The data CLECs, as you note, sell their services through an ISP. (Just one example: speakeasy.net which resells Covad service.) That's a tough business to be in since they're competing with ILECs who offer lower costs -- sometimes significantly lower. It shows in the numbers, so far, with ILECs getting the majority of DSL subscribers. As I've looked at the various services, the general factor that seems to distinguish marketing of DSL is quality-of-service. Most business-class DSL services provide a QOS guarantee that would be nearly impossible on cable (which is why even @home offers DSL for business). Although residential service rarely has a guarantee, many of the providers emphasize the dedicated line and the enhanced security of DSL.

To: Mike Buckley who wrote (118)	9/5/1999 6:04:00 PM
From: Teflon	Read Replies (1) \| Respond to of 1817

The cable providers are [content] providers only in the context of video services (primarily), an this will only be a limited part of the overall content equation that consumers want from their interactive online experience. Mind you, ATHM made the first real bold step in this direction with their purchase of Excite, but this (again) was only a small step in the proper direction. For the most part, consumers enjoy a much broader content experience than what either the Cable MSOs or DSL providers provide (both in the present and near term future tense) today...and this is why MA's vision of where AT&T needs to go over the long term is so intriguing. So I disagree, Mike, the differentiation challenge is not so easy to overcome. Teflon