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To: E. Davies who wrote (10476)6/5/1999 4:01:00 PM
From: Benkea  Read Replies (1) | Respond to of 29970
 
Eric:

"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."

The point I was trying to make is that T can just jack the rate for EVERYONE (including ATHM) by enough to net the same as it would if its' partially owned ATHM was providing the service!

The advertising and ad revenue is another story.



To: E. Davies who wrote (10476)6/5/1999 5:29:00 PM
From: ahhaha  Read Replies (1) | Respond to of 29970
 
I don't argue they can make it up on volume, but that is true also. It is all the ancillary action that is the essence of the matter.

You say that the pipe isn't big enough to carry all the competitors. If the users, the ISPs who want to offer BB, want to expand the pipe so that they can do so, then they should sign an agreement with T to increase the bandwidth by investing in T's build-up and out. There are many ways to accomplish the equivalent. The idea is simply that if everone wants something, then there exists a way to accomplish that end. The only impediment is selfishness which reduces the return to the selfish interest.