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Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: robert duke who wrote (1997)	3/1/1999 3:35:00 AM
From: FR1	Read Replies (1) \| Respond to of 4298

I think it makes more sense for T to just make a good deal selling bandwidth over ATHM to AOL for a good price. Several reasons: 1) AOL is big today but you never know about tomorrow. AOL has no monopoly on chat rooms. YHOO and others offer free chat and it's hard to believe you will have to pay to chat 10 years from now. AOL is nothing to give up your business for. 2) The government has given T and ATHM a license to print money. They have a monopoly on the cable internet access and can charge whatever they want. AOL is playing hard to get but knows that DSL sucks and cable is really the only game in town. That's why they fought this thing so hard. 3) So T (ie ATHM) is probably going to make some deal with AOL for access. It can do nothing but help T and ATHM. Probably some kind of deal where AOL gets access but has to share the monthly dues paid by subscribers with ATHM and hence T. 4) T will probably turn over its ISP business to ATHM for a bunch of stock. Maybe so T owns 49.9999% of the voting rights.