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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (27989)	12/16/1997 10:35:00 AM
From: George T. Santamaria	Read Replies (3) \| Respond to of 61433

<.....Now if you are using twice as many when you connect, doesn't that basically double their cost of having you as a customer? ....> Just think of the other costs.. backbone, admin, tech support. Those all increase but they don't automatically double. I agree, the cable modem is great but the cable operator has all of those costs as well and they also increase. Furthermore, you know that the cable modem is great when just a few subscribers sign on. What do you think will happen when the network gets loaded? No cable operator has ventured to tell anyone yet. How do you think the cable operator will respond to a network overloaded situation? Probably the same way that AOL did to theirs, especially when one considers how they've stuck you with the $150 investment in eqpt. The 112k has one other really nice feature-- it will sell because of the fact that it is a minor mod to a familiar piece of eqpt. which works in a familiar infrastructure. The ISP's investment in modems can be used for either the premium customer or for the regular customer. Don't sell it short, it is also a great end run around the phone Co's refusal to price ISDN (short for It Still Does Nothing) fairly and install an adequate base of ISDN eqpt..