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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: StreetAdvisor who wrote (31351)	9/23/1999 7:17:00 AM
From: Pruguy	Read Replies (1) \| Respond to of 41369

News on this deal is coming from executives at the companies involved. Why is it good for AOL if they drop the subscription fee for AtHome users, but keep the ad revs? Show me who and when they said this and I will believe it. - AOL makes nothing, that's nothing, from the $21.95 a month fee. This covers infrastructure. With AtHome providing the infrastructure, there is no need for this $21.95. For months AOL has been harping on the fact that they are now in a position to leverage their infrastructure they have spent years building. Each added member adds no incremental cost. This would fly in the face of what has been core to their infrastructure builup. What would an arrangement like this do to their DSL deals. Those would then have to be renegotiated at less favorable terms than they currently have in place. In 6 months the number of available homes for DSL service that AOL has partnership agreements signed,will be greater than the potential number of cable customers that T controls. To me, this arrangement you are referring to makes absolutely no sense. I am betting with my money that this deal doesn't happen as you suggest. If it does I just may sell everything and buy T, till then I'm happy to keep my AOL and watch T getted bogged down by their acquired debt load and high infratructure cost vs. AOL which has much lower built in cost to maintain their infrastructure