We believe AOL and Time Warner are in the final stages of gaining approval from U.S. and Europe regulatory commissions. We do expect any concessions that would materially impact future performance.

We contend AOL Time Warner is powerful enough that it won't go gently into the night (unlike Novell, WordPerfect, Lotus, Netscape, et al). We do believe, however, that developments between the two companies over the next year or two will have significant bearing on the long-term direction of the industry.

Every hour that the average user spends online, AOL pays for it directly, yet the average user only pays a flat rate of $21.95 a month. So if usage continues to go up, AOL's cost continues to increase and this is something they've started to control over the last several quarters.

The biggest challenge AOL faces is really controlling its usage-based cost structure.