[11438] in Commercialization & Privatization of the Internet

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The whole CIX concept is flawed

daemon@ATHENA.MIT.EDU (Barry Shein)
Sat Apr 2 21:28:13 1994

Date: Sat, 2 Apr 1994 17:53:55 -0500
From: bzs@world.std.com (Barry Shein)
To: jlw@cs.columbia.edu
Cc: bilse@eu.net, com-priv@psi.com
In-Reply-To: James Waldrop's message of Sat, 02 Apr 1994 13:42:41 -0500 <199404021843.NAB24187@shekel.cs.columbia.edu>


>From: James Waldrop <jlw@cs.columbia.edu>
>In fact, the $10K seems to me to be more of a barrier to entry --
>an anticompetitive agreement among certain large ISPs.  Sprint
>can afford to pay the $10K, and is probably happier than not

A $10K/yr fee is not enough to be considered anti-competitive. The
mere existence of someone who cannot raise $10K is not proof to the
contrary, we can probably find someone who can't raise $10. $100K/yr
might be more in the range, $1M/yr I'd say certainly. But $10K/yr? I
mean, what kind of capital are these businesses using? An outfitted PC
costs about that much. I think what people are saying when they say
$10K/yr is a barrier to entry is simply that they'd rather spend the
$10K on something else, not that it's some insurmountable barrier.

        -Barry Shein

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