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

To: Sam who wrote (9422)	4/8/1998 5:03:00 PM
From: Mark Oliver	Read Replies (1) \| Respond to of 13594

If it ever comes about, I'm sure the DSL pricing will be more, around that $39-49 range (as far as I can guess, anyway). The questions about cable and a bundled package bring up a good point. Although, I'm not sure if they would be able to survive with such a low price! Currently, the prevelent charge for cable modem access is around $40 or so. My cable tv bill hovers around $35. Essentially, at the price you quote they would be "giving away" one of the services. Doesn't seem feasible. I'm saying bundle like the add on pay tv. I wouldn't expect them to give anything away. I would think they might use it to win back some customers who went satalite. I'm not sure how many consumers are awaiting cable access. All I know is that the members of SI are usually a tech savvy bunch, and therefore crave bandwith - we are not a good litmus test for the average consumer. Most would be happy with a dial-up, I'm not sure how many would balk at paying $40 for a higher speed connection. You might be right that SI users are not normal. In my case, I have a second dial up line for internet use and$20 a month ISP fee. It would be a no brainer to switch. I think suggesting people will be satisfied with less is a mistake. Kids will be using high speed connections at school and coming home to snail systems. People will want to video conference, down load video and audio, play games and they'll just get so much more for their money it will be clear that speed is indeed necessary. AOL abused their customers with hourly fees until it was absurd. Can they do it with line speed also? It is always possible for AOL to partner with a major cable service provider - and this could happen if consumers demand cable. But right now, I don't see it. BTW, you can access AOL via cable modem right now. Seems to me that AOL partnering with a cable company would make about as much sense doing the same with a RBOC. It would only provide service to one area. Today, they provide point of access and content. If they loose the point of access control, will they still win the eyeballs for content? I rarely have need to view an AOL site even though I can. It would seem that the average AOL user is less sophisticated, or at least started out that way, than other internet users. Maybe they can hold onto these technophobes, but it would seem to be only prudent to have a plan to go on to higher speeds. From your answer, you see them going to ADSL service. Probably the only solution they have. Regards, Mark PS It has amazed me that SI has been able to maintain the high standard of service and show no outward signs of revenue generation. I like not seeing ad banners, but it wouldn't stop me from using the service. I hope AOL does not get involved.