[227] in Commercialization & Privatization of the Internet

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Usage Charges

daemon@ATHENA.MIT.EDU (Barry Shein)
Wed Feb 27 20:03:58 1991

Date: Wed, 27 Feb 91 19:15:43 -0500
From: bzs@world.std.com (Barry Shein)
To: fair@apple.com
Cc: schoff@psi.com, com-priv@psi.com
In-Reply-To: "Erik E. Fair" (Your Friendly Postmaster)'s message of Wed, 27 Feb 91 12:20:18 -0800 <28113.667686018@apple.com>


If I offered you two choices for buying a 56Kb line, either $1000/mo
or $0.035/Kpacket, which would you take?

Well, I'll save you the calculation, at 100% utilization, 24 hrs/day,
7 days/week $0.035/Kpkt @56Kb comes to about $1000.00*.

* This assumes a 512B packet, one can easily play with this stuff in a
spread-sheet as I did, varying packet size etc.

So, from a purely economic point of view (and using my assumptions),
you're much better off with the usage charge, since you won't keep
that line busy 24hrs/day @100%, you'd probably have a hard time
spending half that ($500/mo.)

The question is, is this the whole story? Clearly there exists a
packet charge which lets you come out ahead dollar-wise.

	-b

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