To: J. P. who wrote (54516 ) 4/4/1999 9:28:00 PM From: TheStockFairy Read Replies (1) | Respond to of 132070
Aol is in several deals currently for broadband access. Off of the top of my head, SBC is going to provide DSL. On top of that, I am assuming that UUNET (MCI/Worldcom)and Rhythms.net are also going to be supplying part of the country with DSL under the AOL brand name. It should run about the same price as @Home, about $50 a month. AOL is the technology of the past, but the power internet users are, in my opinion, not using AOL. These are the power browsers, the ones who spend a several hours per day on the actual internet. Remember AOL software although it uses internet technology is not the internet. Dialing into AOL only gets you to AOL and it's servers. The demographic of the AOL user could change quite fast if AOL can successfully intergrate DSL into their network. I would be in for $50 a month to get a 1 meg download. Better than my 128k ISDN (It Still Does Nothing) at $80 a month. AOL has built it's reputation as being an "internet light" company. It is their portal, or the AOL software, that makes AOL special. The community that AOL has built through chat rooms is second to none. Expand what you see on SI and multiply it by a 15 million people, add in real time chat and you have AOL. That is what the draw is. Throw in some shopping and add in advertising revenue and you have a real company with real revenues. DISCLAIMER I am a former AOL employee. I currently believe their stock price is inflated. I do feel that out of all the INUT plays, AOL has the best bet of staying in the game and actually forming some solid revenues. Will those revenues support the price? No, but I am not about to bet against them. I have enough to worry about my SCH puts :) TSF