[314] in Commercialization & Privatization of the Internet
Re: Usage Charges
daemon@ATHENA.MIT.EDU (matsb@sics.se)
Thu Mar 7 04:50:00 1991
To: bzs@world.std.com (Barry Shein)
Cc: fair@apple.com, schoff@psi.com, com-priv@psi.com
In-Reply-To: Your message of Wed, 27 Feb 91 19:15:43 -0500.
Date: Thu, 07 Mar 91 10:23:56 +0100
From: matsb@sics.se
Barry wrote:
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*.
If your were a serviceprovider setting these cost levels you would be
out of business fast:-)
Either yuo have overpriced the fixed cost or underpriced the usage
cost. The extra cost for doing the accounting/administration would at
least come to 20-30% overhead.
--mats
