America Online Inc also announced a deal with Tel-Save Holdings Inc last week, in which America Online got a $100m initial payment in return for it marketing Tel-Save’s low-cost long- distance telephone service to America Online subscribers this autumn, and its chief financial officer, Lennert Leader, said the deal will also give America Online up to 17m Tel-Save warrants and a chance to participate in $240m equity appreciation in the company if the shares rise by $20 a time. Leader said he expect there to be roughly 50m to 55m US households with computers by around the year 2000, with about 35m of them using on-line services – We see predictable consumer on-line buying patterns, he said in his presentation. We are a nation of brand buyers – we’re seeking convenience – convenience is king, he said.
