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


To: Ram Seetharaman who wrote (35673)12/21/1999 2:20:00 PM
From: Tecinvestor  Read Replies (1) | Respond to of 41369
 
Ram, I don't think it's that simple. What about high speed internet access? Will that be free, as well? I hardly think so.

If everyone will eventually have high speed access I would assume that the high speed access provider, who will be deriving a fee for the service, will have to fork over a significant percentage of that fee to the ISP in return for the privilege of servicing the ISP's customer base.

I haven't a clue what the economies of such an arrangement might be, but it may be more lucrative for a company like AOL to relinquish its subscriber fee in exchange for a percentage of the high speed access fee. I don't think there's any question that if AOL offered free internet access its membership would increase. That larger customer base translates into bigger dollars derived from e-commerce since, presumably, the price AOL is able to charge for advertising is dependent upon the size of its subscriber base.

Bottom line, free interent access may not be a bad thing. I think it depends upon just how lucrative these e-commerce deals are to a company like AOL. My gut reaction is that these deals will be quite lucrative.

Tecinvestor



To: Ram Seetharaman who wrote (35673)12/21/1999 3:45:00 PM
From: CGarcia  Respond to of 41369
 
""You've got to hand it to Bill Gates who said years ago that bandwidth should be free,""

That's why the price of MSN recently jumped from $19.95 to $21.95...Nice article though, another good try by shorts trying to scoop more AOL while the stock is still reasonably cheap :)