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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Jing Qian who wrote (4987)	2/1/1999 3:19:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 29970

No, no, no. The jv has no negative consequence to ATHM. Aside from the market opening effect of the move against her chillen' and its obvious potential revenues, it is T's ploy to drive a wedge between AOL's broadband plans and the availability of TWX to engage them. T doesn't want thin margin telephony, that's part of the plan to keep the FCC off its back while they corral the broadband world. They are stuck with telephony as a tradition so they are making the best of it. Telephony shoeshorns takers of ATT service into broadband. It is the package of telcom services that the public will like and ATHM will help to provide. Further, it is in ATHM's interest and T's, to keep Road-Runner separate. TWX is definitively not interested in merging the two. You don't want that anyway for two reasons: it is monopolistic and therefore inefficient. It invites interference from the FCC and it makes ATHM poorer because they don't have a competitor breathing down their neck forcing them to continue to get better. In a competitive environment you can hold for the long term, not under an environment embracing the universally false view that protection from competition yields the highest return.