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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (7917)	2/15/1998 3:10:00 PM
From: Steve Robinett	Read Replies (1) \| Respond to of 13594

Bob, <<The $2 price increase must help the bottom line.>> A penny save is a penny earned, I've heard. Money's fungible. That's $2 they don't have to put out for networks services. Pittman has a reputation as being "investor friendly." The only way you can be investor friendly is increase valuation. If advertising and commerce aren't growing quickly enough, raise rates. Personally, I think the "increased costs" explanation is just to avoid being accused of gouging. Increased usage due to flat-rate pricing can hardly be news to AOL or anyone else. For several years now, I've seen news stories about the average length of phone calls going from under 3 minutes to pushing 20 minutes due to internet usage. Best, -Steve