[10848] in Commercialization & Privatization of the Internet

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Re: Two-way Internet service from Continental Cable?

daemon@ATHENA.MIT.EDU (Martin L. Schoffstall)
Sat Mar 12 11:28:54 1994

Date: Sat, 12 Mar 1994 09:13:56 +0000
From: "Martin L. Schoffstall" <marty@psilink.com>
To: sundar@ai.mit.edu (Sundar Narasimhan), fidelman@civicnet.org
Cc: jmm@merit.edu, com-priv@psi.com, schoff@psi.com

Actually the PSICable/Individual service supports upto 3 IP addresses in your 
home.  Faxback information is available at 1.800.79fax79.

As discussed in the roll-out meeting as this scales up we expect the price 
for individual service to go down; however, ther are two points that need to
be made here:

(1) first generation PC's didn't cost $1,000, and first generation VCR's 
didn't cost $250.  General expectation is that the two important curves for 
broadband CATV Internet access will mimic those of the PC world, price goes 
down, and performance/functionality goes up over time.

(2) While the target marketplace for the individual service is information 
workers (who are possibly subsidized by their companies) and net-weenies 
(like myself, who might substitute more carbohydrates and beans in their 
diets over meat to afford it) the real short term impact is SMALL BUSINESS 
(and possibly Medium size business's) who want meta-Broadband connections 
today.  If you consider what kind of $/month you need to do with your LEC or 
CAP for them to install broadband fiber into your business - no small 
business started in your home or in some class C wharehouse space is going to 
get it in the first N years of business.  Yet every survey seems to point out 
that small and medium business's create almost all the new jobs in the US.  
Given the growing distributed information economy there is the capability to 
even the playing field a bit with respect to the small business have-havenots.

I had the opportunity to discuss this with the Mass. Undersecretary of 
Economic Affairs (Steven Wallace) who found the argument compelling 
especially for a technology area like Eastern Mass.

Marty

As discussed 
> But I was disappointed with the pricing. 100$/month for metro access (
> read other CCTV customers) 125$ for internet access. However, this is 
> just for ONE computer in your home. If you have a little subnet running 
> at home (now -- let's see now, how many of us are there), the price 
> jumps to 1K$/month for routing stuff. 
> 



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