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To: Gary Korn who wrote (34078)2/9/1998 4:42:00 PM
From: Dee Jay  Read Replies (1) | Respond to of 61433
 
give some thought to what may happen if one or more majors DON'T follow AOL; will they backtrack?

And there are enough locals or regionals that could see this as an opportunity to take business away from AOL by trumpeting NO RATE INCREASE HERE!

Remember back to the days when an airline would tentatively announce new, higher fares but someone wouldn't go along and the higher fare was rescinded - could easily happen here in the quest for market share. IMHO
Dee Jay



To: Gary Korn who wrote (34078)2/9/1998 4:45:00 PM
From: FUZFO  Read Replies (2) | Respond to of 61433
 
Gary

"Importantly: What would be the nationwide revenue impact of a $2/user revenue increase? That would be a helpful piece of information (to assess what funds might be available for capital purchases)"

From my post #33939 yesterday, the study puts the number of online users to approach 70 mil by mid 1998. If all the service providers were free to increase rates by $2/mo that injects $2 x 70mil = $140 mil/mo x 12 = $1.68 bil of revenue into the coffers yearly. Part of the ensuing added profit will likely be used for additional equipment, but I cannot comment on how much. Anyone else?
Regards,
Fuzfo



To: Gary Korn who wrote (34078)2/9/1998 5:00:00 PM
From: Bald Eagle  Respond to of 61433
 
<<What would be the nationwide revenue impact of a $2/user revenue
increase? >>
AOL alone has 10,000,000+ users, so that's $20MM per month extra for them per month or $240MM per year ( assuming, an insignificant number of people drop out due to increased prices ).
Does anyone know how many people use other ISP's?
Also, will they all follow suit and if so, when?