Re: AT&T et al as ISP

atmnet@usa.pipeline.com ((atmnet@usa.pipeline.com))
Fri, 8 Mar 1996 09:18:34 -0800


I missed the WSJ article but there are some basic circumstances worth
consideration when evaluating AT&T's impact in regard to Internet related
buinesses.

First few corporations if any have the infrastructure, backbone, or
resources to rival AT&T's WorldNet efforts. We have tracked the development
of AT&T's current strategy through the acquisition of McCaw, alliance with
BBN, division into three entities, launching a DBS, et. al., etc,. AT&T is
positioned to be a major player regardless of which direction market forces
flow.

Secondly, research indicates AT&T will be successful in reaching their
objectives regardless of the fate of WorldNet, whereas small service only
businesses will not be able to compete on price and maintain margins
without adding content and value-added services. The one thing that is
without a doubt is that AT&T will completely alter the playing field in
regards to Internet related businesses. Especially, in regards, to small
ISP's.

In the near future small ISP's that thrive may look more like media
companies, which provide rich content that is integrated with technology
such as virtual reality, Internet Phones, video conferencing, etc. In the
present, small ISP's will need to market agressively to survive and/or
utilize specialized marketing support, that will provide in-home software
installation and training on a percentage basis.

Any other ideas in regards to doing business in the 'New WorldNet Order'
would be appreciated.

Thanx,
Randy

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