[113] in Commercialization & Privatization of the Internet
Re: Regionals and commercial providors (was: Re: Is SUNFLASH...)
daemon@ATHENA.MIT.EDU (David J. Farber)
Sun Nov 11 22:02:42 1990
Date: Sun, 11 Nov 90 21:48:56 EST
From: farber@central.cis.upenn.edu (David J. Farber)
To: sob@tmc.edu (Stan Barber)
Cc: com-priv@psi.com
As one of the instigators of the three level model (a small voice), I think it was
wrong not in its structure as much as in its economics. When I spoke in Canada
about our experiences in the states, I took the position that the basic error was
to allow the regionals to be created without a business plan that , under normal
business interpretation , would yield a breakeven situation within three years.
That was the path CSNET took and it was important and eye opening. It forced us to
think about business not just "fun". We had to market, sell , listen to potential
customers, else the network would be out of business since the NSF made it clear
that three years of subsidizing and that was it.
NSFNEt should have had the same requirements on regionals and established a
qualification mechanism to force it.
I , unfortunately, believe we will see what you call a ARPA net style network as
the "commercial" players see that cream skimming is just too profitable. Its just
too hard to resist capturing the big guys via direct connect and leaving the little
fish for the "utility" networks.
History has shown that without regulation that seems to be what happens. -- but I
am not an economist!!
Dave
