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To: Jing Qian who wrote (5511)	2/18/1999 11:08:00 AM
From: Jay Lowe	Respond to of 29970

Thanks Jing ... I understand that side of the picture ... I was hoping ahhaha would comment on how the two are perceived to compete. I see them as disjoint regional (albeit patchwork) entities. I also don't see much creative or causal significant in whether they are together or apart ... the technical and financial aspect are in the noise at this point. There might be some slight incentive to base layer technical competition, but that's counteracted by the CableLabs energy, no? Competition will be in service delivery infrastructure and content relationships, yes?

To: Jing Qian who wrote (5511)	2/18/1999 12:08:00 PM
From: ahhaha	Respond to of 29970

It isn't there for the simple reason that neither TWX nor T want it to be there. T's reasons I've given earlier. ATHM is in no position to make a public statement about what they think they want. About a year ago Jermoluk tried to convince TWX to merge, but TWX wanted too much for RR. Sometimes what you want is not in your interest to have. The point is that TWX knows they have a gold mine there and there was no real intent on their part to part with it. Now, with the series of recent events the gold mine has only gotten far more valuable to the point TWX recognizes it holds their future. They are a storehouse of media, but the value can't be realized without an effective delivery mechanism. I don't need to remind you who made the dough in the California Gold Rush. The only reason ATHM and RR aren't going head to head, is that the networks aren't sufficiently built and the MSOs are built around gerrymandered territories according to the old anti-competitive, public mandated, TV fairness formula. It is exactly the public's demand for protection that created the extremely negative public's view of TCI as seen in Seattle et al. The old structure is dying to the dismay of the public (they like to pay the protection money) and it will be replaced by a default free market in cable broadband. Then you will see the latent competition in full bloom.