That s the nature of Internet investing these days. More recently, Compaq and Microsoft have also bought in. The plan is not to compete head on, for the most part, but to go after mostly smaller, independent cable systems. Even where there might be competition, SoftNet can be more flexible while still making money with its lower costs. There are an estimated 4,000-plus smaller, independent operators, with cable systems that pass some 30 million homes.
Most cable companies don t want to become internet service providers themselves.
It s easier to let a specialist provide the connection for a share of the income. Besides, SoftNet will offer additional services, like local shopping directories and eventually perhaps telephone service. So there s a big potential market for an independent. Still, SoftNet needs an edge and it has one with the recent agreement to acquire Intelligent Communications, a satellite communications system developed by Xerox. This business will be bought for a fraction of its development cost, and partly in stock at that.