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

To: Benkea who wrote (10457)	6/5/1999 2:25:00 PM
From: E. Davies	Read Replies (2) \| Respond to of 29970

Open access just means T will charge all the ISPs the same $11.20 it gets from its' 70% ownership interest in ATHM Just to correct a fact. T does not have 70% equity in ATHM, they have less that 50% (dont have the number onhand). The ~70% is voting control. In addition I doubt "equal" access would allow T to charge other ISP's for the % of ATHM's income that T owns. If ATHM in essense pays $24 a month for access to the lines, the other ISP's will pay $24 too. I cant see how the heck they can guarantee that everyone gets charged the same without complex government control of every detail. T loses the portion of the remaining $16 (or whatever the actual number is) that they get from owning ATHM. In addition (and more importantly) they also lose their percentage of all the advertising and e-commerce dollars ATHM could generate from its customers. Ahhaha argues that T (and even ATHM) can make up for that lost revenue on volume. More ISP's would create more customers which means more profit for everyone. Maybe, maybe not. What that would require is people who say: "I wont pay for ATHM broadband but I will pay for AOL (or MSPG etc) broadband". How many will be like that? Dunno. Depends a lot on how stuck people are on their e-mail addresses I guess. Opinions? Eric