[11151] in Commercialization & Privatization of the Internet

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Re: What is an "Internet reseller"?

daemon@ATHENA.MIT.EDU (Glenn S. Tenney)
Wed Mar 23 00:15:32 1994

Date: Tue, 22 Mar 1994 14:58:22 -0800
To: com-priv@psi.com
From: tenney@netcom.com (Glenn S. Tenney)

At  5:26 AM 3/22/94 -0500, Barry Shein wrote:
>From: tenney@netcom.com (Glenn S. Tenney)
>>If I want to offer a SLIP-only dedicated-line service, I need:
>>* an incoming phone line with a modem
>>* a port on a router
>>* a connection to some net
>>And note, that ALL of those resources that I have to purchase are already
>>flat rated to me -- there are NO usage charges for ANY of them.
>
>If your router can handle absolute, flat-out bandwidth on all ports,
>if the outgoing line can handle absolute flat-out bandwidth on all
>ports, if the provider your outgoing line is attached to can handle
>absolute flat-out bandwidth, then perhaps that would be the case.

What a minute, Barry...   using all or some of the bandwidth has NO bearing
on whether this is flat rated or not.    If I purchase a wire between my
router and the net, and share it with two dozen people, then I can tell
each of them what their share will be -- flat rate, period.   Usage charges
have nothing to do with this.  It's up to me to divide the pipe up
equitably amongst those 24 friends, or to be sure they all know that there
is a limit on throughput if too many of them are active at once or... I buy
a bigger pipe and each person's share goes up -- or we agree to compute
each person's cost on the ratio of their pipe's size to the net pipe's
size.

The point is that, for SLIP service, the costs are ALL flat rated to the
ISP, and have nothing to do with usage.   Now, if you want to charge extra
for NNTP or SMTP, that might be something where usage comes into play.  But
for straight routing of packets, everything is flat rated to the NSP.

---
Glenn Tenney
tenney@netcom.com   Amateur radio: AA6ER
(415) 574-3420      Fax: (415) 574-0546



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