[10880] in Commercialization & Privatization of the Internet

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Re: The FCC strikes the Internet (fwd)

daemon@ATHENA.MIT.EDU (Miles R Fidelman)
Sun Mar 13 14:03:52 1994

Date: Sun, 13 Mar 1994 10:21:59 -0500 (EST)
From: Miles R Fidelman <fidelman@civicnet.org>
To: com-priv@psi.com
In-Reply-To: <m0pfdrG-000BbgC@mercury.mcs.com>

On Sat, 12 Mar 1994, Karl Denninger wrote:

> The Net <already> has flat-rate access in most metro areas.  IF you really
> think that is important from a public policy point of view, force the
> telcos to provide flat-rate LONG DISTANCE and LOCAL phone service.  Doing
> <that> is at least a level playing field (you can communicate in either
> voice or via data over such a line, at the CONSUMERs option).
> 

Actually, flat-rate local service is the key point underlying all of 
this.  Right now, the Internet becomes flat rate if:

a. you are a large enough site to justify a leased line to your nearest 
Internet POP, or,

b. you are a residential user, with unlimited local dialing and a local 
flat-rate SLIP provider, or,

c. you are a small business/organizational user, with unlimited local 
dialing and a local flat-rate SLIP provider

Note that case c. is the least common, and its the lack of flat-rate 
business calling that's the sticking point.  Even cheap SLIP service 
becomes very expensive when you're paying $.01 or more per minute for 
dialup access.

Also note that the heaviest social benefits will probably come when small 
businesses, schools, libraries, etc. can get on the net at a 
price-per-desktop comparable to that of larger sites.

One alternative to flat local business calling is better unbundling of 
local loop services.  I.e., if I, as a third party, can co-locate some 
switching gear in a telco central office, and buy unbundled access to the 
copper local loops (at a flat-rate), I can probably offer pretty cheap 
flat-rate Internet service.  The good news is that this is precisely the 
kind of unbundling that long distance carriers, cellular carriers, and 
budding PCS carriers are spending large amounts of time and money 
lobbying for.


**************************************************************************
Miles R. Fidelman                   mfidelman@civicnet.org
Executive Director                  91 Baldwin St. Charlestown MA 02129 
The Center for Civic Networking     617-241-9205 fax: 617-241-5064

Check out our gopher server:  
CCN - The Center for Civic Networking
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Information Infrastructure: Public Spaces for the 21st Century
Let's Start With: Internet Wall-Plugs Everywhere
Then We Can Worry About: "Switched, Interactive, Broadband Services"
**************************************************************************


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