[12689] in Commercialization & Privatization of the Internet
Re: EFF and the big bad T (tax) word [long]
daemon@ATHENA.MIT.EDU (Daniel J. Weitzner)
Thu May 26 08:44:36 1994
Date: Wed, 25 May 1994 19:44:07 -0600
To: bzs@world.std.com (Barry Shein)
From: djw@eff.org (Daniel J. Weitzner)
Cc: com-priv@psi.com, alt-politics-datahighway@cs.utexas.edu,
frezza@radiomail.net, don.wills@swc.com
Barry,
Thanks for your thoughtful note. I agree with just about everything that
you have said. In particular you have said 3 things that are important:
1. IP access is becoming cheaper and cheaper.
2. Net access is, in part, dependent on things like PCs, which are cheap
but not $0, and local phone lines, which are also relatively cheap.
3. Some user communities still can't afford access, and even if they can,
they need help with critical support services like staff, training, etc.
These 3 points translate relatively cleanly into the policy that EFF has
been pursuing since 1991.
As a caveat, I want to point out the critical distinction between what the
FCC calls basic services (like telephone lines: POTS, ISDN, leased lines,
etc.), and enhanced services, that ride on top of basic transport service.
EFF has never advocated rate regulation or special taxation of enhanced
services. We don't believe rate regulation of enhanced services is
necessary because the market is highly competitive, unlike transport
services which, in most cases is a monopoly.
1. Promote competition in the IP market, don't regulate it.
Since the ANS monopoly was broken up, commercial IP providers large and
small have done a great job of pushing down price and gradually even
increasing quality of service. We should do everything to keep this market
healthy and try to avoid any unnecessary regulation.
This competitive environment is a critical part of promoting broad public
access to the net.
But, we have to recognize that a significant part of reason that access to
the Internet and other services is so cheap is that the underlying
transport (ie. telephone lines) are cheap and universally available.
Hence, my 2nd point:
2. Ensure widespread availability of high-speed, digital infrastructure at
affordable rates.
The market for basic transport services, especially for residential
customers is still 99.44% monopoly. Gradually this may change, which would
be great, but it hasn't happened yet. Therefore, we need regulatory
involvement to ensure fair prices and deployment of new, high capacity
services.
While a monopoly environment exists, the only way to ensure continued
affordable access to enhanced services, like the World, is to keep
transport rates reasonable.
3. Provide funding to support net access for public institutions.
You've already made a compelling case for this. We support it and always have.
**************************************************************************
"Only in a police state is the job of a policeman easy."
--Orson Welles
......................................................................
Daniel J. Weitzner, Deputy Policy Director <djw@eff.org>
Electronic Frontier Foundation 202-347-5400 (v)
1001 G St, NW Suite 950 East 202-393-5509 (f)
Washington, DC 20001
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