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

To: jack rand who wrote (9161)	3/31/1998 5:13:00 PM
From: yard_man	Read Replies (1) \| Respond to of 13594

Jack and the Duke, This news is really good news for AOL bears. AT&T is just underscoring how costly it really is to provide internet service. Flat rate is a loser. Internet traffic is terribly "bursty." To get the advertising revenue AOL must continue to show subscriber growth. If it slows, levels off, or declines they have had it. If it doesn't AOL has a lot of money to spend to keep up. Remember Case's comments about the increase for the flat rate not adding to the bottom line? I am willing to bet that he was more than correct on that score. Let's wait and see.