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To: jhg_in_kc who wrote (2420)	5/9/1999 8:11:00 PM
From: nghi vu	Read Replies (1) \| Respond to of 4298

You touched on the points that I mentioned in my previous 2 posts on this board. The 80% plus that AOL has no control is going into MCI and the bells' pockets. AOL has contributed billions of revenues to MCI the last couple of years. Frankly, I am surprised that Mci and AOl hasn't merged yet, or no one even mentioned the possibility. Talking about vertical integration. If MCI merges with AOL and find a way to bypass the babybells for the last miles, goodbye babybells and goodbye DSL. I am surprise that the deal with Nextel fell through with MCI because I feel for sure that is what they are trying to do. Right now, the wireless technologies have a hard time deliver data faster than your 14.4k modem so it is not there yet but Sprint PCS is a very yummy wireless play that can change the landscape of AOL and MCI if the moon lines up right. JMHO. Long on PCS, AOL, and T.

To: jhg_in_kc who wrote (2420)	5/10/1999 6:35:00 AM
From: Robert Scott	Respond to of 4298

"Getting out of the ISP business for AOL would probably be a greater psychological shift than their transition from hourly metering to flat-rate billing but my guess is that is exactly what will happen." You are missing several key points. 1. AOL is not going to give up perhaps over 40% of its revenues (the ISP portion of the 83%). There is no reason to do this and the stock would get crushed. 2. Continuing to be an ISP ESPECIALLY in the broadband world is where they are headed. Why? because a. The telcos MUST sell access to AOL at the same price as they sell it to their own internet subs, and b. It is extremely profitable. Consider this = mark up what they negotiate from the bells to us. Further, segment the pricing so that we pay more for more bandwidth. Believe me, its coming and will be hugely profitable for AOL and the bells and others. I believe eventually AOL will get access through cable somehow. Current law doesn't call for it except through analogy. In the meantime, most of AOL users use the service for chat and email that doesn't require broadband. However, broadband services are beginning to be developed and AOL knows this and will be there.