Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Ted Schnur who wrote (9239)	5/7/1999 4:05:00 PM
From: ahhaha	Read Replies (5) \| Respond to of 29970

Yes, they can and will do something like this, but what I'm suggesting would go down the lines of this: purchased concession on a one time basis. The problem in the cable world is that there is little cable. If 90% of the populace was wired, then the game is entirely different. This is similar to the railroad history during the 19th century. AOL, MSFT, ATHM, T, etc. are arguing and dealing over something that doesn't exist. They have to get it built. T can't do that alone. T hasn't even swallowed the operational disaster that is TCI. Say AOL wants access. They go to T and say, we'll sponsor, provide our stock as collateral, to issue revenue bonds to HFC upgrade x quantity of installations, in exchange for access in this market amortized at a rate proportional to yield/term on the bonds. Say Comcast wants the same outside of their gerrymandered cut. If they can arrange similar financing deals, they should be able to operate outside their satrapies. Otherwise, the result will be a return in BB Internet to the cable tv MSO hegemony and in telephony, the equivalent situation that exists with the RBOCs. Say SBC wants to be able to offer BB Internet. They could cut a deal like those above with say ELNK, AOL, and MSFT to contribute according to their working interests in order to build out or upgrade their facilities to HFC. They don't have a choice because the economies of scale in BB telephony are going to blow their circuit switched dialups off the map. None of this has to be done under T's umbrella. These firms can go off and do it independently, but if T had initiated this strategy in the first place, then you'd have an old fashioned space race. All the players would have to dance. Now they can sit and watch. I will be expanding on this thesis, but I need criticism and objections from everyone. Ron...