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To: Kurthend who wrote (5581)	3/12/1999 6:24:00 PM
From: Kurthend	Respond to of 10081

Any thoughts on this announcement today between AT&T and IBM. dailynews.yahoo.com Friday March 12 6:09 PM ET U.S. Approves AT&T Purchase Of IBM Network WASHINGTON (Reuters) - The U.S. Justice Department will allow AT&T Corp. (NYSE:T - news) to purchase IBM's global data communications network, the companies said Friday. The U.S. antitrust regulator informed the companies that it had completed its review of the $5 billion transaction and would take no further action, the companies said. European regulators are still reviewing the deal. Under the deal announced on Dec. 8, AT&T would buy IBM's Global Network for $5 billion in cash, marking the telephone giant's most recent move to expand its international reach and its fast-growing data business. Analysts have said the deal will help AT&T leap-frog into a leading position in providing communications services to large firms and bolster its international venture with British Telecommunications Plc . IBM's Global Network provides data networking services for clients, including setting up and managing their internal networks and providing Internet connections. It serves about 35,000 companies in more than 100 countries and provides Internet access to more than 1 million individual users in 59 countries. IBM, International Business Machines Corp. (NYSE:IBM - news), set up the division in 1981 but has said it no longer needs to own its own network as phone companies are now in the business. As part of the deal AT&T will handle much of IBM's data and voice services. IBM's stock ended Friday down $4.875 at $178 and AT&T shares finished down $1.125 at $81.44 in composite New York Stock Exchange trading. Earlier Stories U.S. To Allow AT&T Purchase Of IBM Data Unit (March 12) Analysts See Further IBM-Dell Ties In Wake Of Pact (March 8)

To: Kurthend who wrote (5581)	3/14/1999 7:38:00 PM
From: Roger Bass	Respond to of 10081

Kurt, thanks for your notes. One small comment on the 'free to users' business model - revenue here (aside from Portico upsells) is likely to come from ads, with 'v-commerce', or 'audio-clickthrough', rather than from partners paying fees for such services. There are also access cost issues here - if an 800 number is to be provided, then that has additional cost that would need to be covered by any such revenue stream. Just how effective and generative of revenues such approaches will be remains to be seen - it's all brand new, so nobody really knows. Still long. - Roger.