[12262] in Commercialization & Privatization of the Internet
Idea for new (?) NSP business model
daemon@ATHENA.MIT.EDU (Mike Bauer)
Wed May 11 23:41:57 1994
Date: Wed, 11 May 94 16:31:41 EDT
From: bauer@tig.com (Mike Bauer)
To: willis@cs.tamu.edu
Cc: com-priv@psi.com, francis@avalle.insoft.com
In-Reply-To: Willis Marti's message of Tue, 10 May 1994 20:44:45 -0500 <199405110144.UAA02729@neuron.cs.tamu.edu>
>>Is anybody doing this already? Has anybody though of this already and
>>realized some major flaw I'm missing? There would be security issues,
>>of course.
>
>Lots of *transport* providers have thought of it -- think how much of an
>advantage it gives them if *they* provide the service without paying
>extra. Why, suppose the NSF was paying you to run a vBNS or NAP and you
>put your service-providing host in the same facility. Now, if someone had
>a valuable service, why would the transport provider want to give you room to
>do it instead of doing it themselves?
Because they're too busy hooking people up. It's a win-win for
everyone if you've got someone renting out facitilies who's sole focus
is doing that kind of work. They pay the provider, the customers are
happy getting the service and everybody's happy. Different sections
of *I* have different economics and this may change over time, but
there are certainly opportunities in these "market discontinuities."
I know of those who are doing so.
