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To: MikeM54321 who wrote (3000)	3/4/1999 12:43:00 PM
From: Sam Citron	Read Replies (1) \| Respond to of 12823

"...no one seems too concerned about the future of AOL ... it would have to try to hitch a ride somehow... I think AOL has proved time and time again that they are masters of evolutionary transformation. I had written them off more than once for roadkill. But they have managed to stay in the sweet spot of the tech cycle for many years. I'm sure they will do a deal when the time comes, whether it is with an MSO, a telco, a hybrid like AT&T, or a satellite company like Hughes. With AOL's new-found status as the "blue chip internet company," their cost of capital is much lower than their competitors. And even after their recent spat with the attorneys general of 40-some states, they carry much less of a regulatory overhead than their telco cousins. I'm not too worried about them. Sam

To: MikeM54321 who wrote (3000)	3/6/1999 6:32:00 PM
From: Phil Jacobson	Read Replies (1) \| Respond to of 12823

if RBOC's are allowed unregulated access to the home with their DSL services, then doesn't that leave AOL --> SOL Mike, Don't underestimate the market power of AOL's brand, partner relationships, and customer counts. Once broadband becomes a more ubiquitous form of access I think you'll see plenty of providers salivating at the thought of doing a deal with them. I honestly don't think AOL has to worry about this too much right now. Although subscriber fees are key right now I also think they are planning for the day they have to be reduced or even eliminated, but again, I don't think that will happen. Money is fungible, and it may be hard to trace this in a particular deal, but they will surely demand a portion of the access fee taken from the end user by any broadband provider who partners with them. Regards, Phil P.S. - I always look forward to catching up on this thread. Great way to spend part of a nice slow Saturday.