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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (15987)	2/1/2003 12:44:09 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 57684

They had a segment on AOL on Kudlow and Cramer one night. (yeah, ok I watch that show from time to time, I think Kudlow is amusing)... anyway what I didn't realize is the margins on the broadband business are significantly lower than dialup... I guess the issue is AOL has to pay the rbocs for the bb and they pay nothing for dialup. I remember hearing this before but never paid much attention. So no matter what AOL does they lose. Its just common sense dialup is dead, why would Microsoft put any money in an expensive campaign for MSN, has anybody tried to use a dialup internet connection lately? Another interesting point mentioned on the same show was that the main catalyst for the bubble in IT spending was the telecom act of 1996. I'm not sure about that, being from software I am a little removed, although we did sell a lot of software to telco's in the 90s (vs. nothing now). It seems like I am sending more money to telcos/cable cos than 5 years ago though, with cable tv/pay per view taking over video, high speed internet and a wireless phone. Really only the land line phone has dropped significantly in price.