[466] in Commercialization & Privatization of the Internet
Re: How will CIX affect rates?
daemon@ATHENA.MIT.EDU (Martin Lee Schoffstall)
Thu Mar 28 09:39:09 1991
To: Alex McKenzie <mckenzie@bbn.com>
Cc: Steven Grimm <koreth@ebay.sun.com>, com-priv@psi.com
In-Reply-To: Your message of "Thu, 28 Mar 91 08:06:16 EST."
Date: Thu, 28 Mar 91 08:31:08 -0500
From: "Martin Lee Schoffstall" <schoff@psi.com>
The reality is that it is indirectly subsidized by giving it a free
T3 connection to the NSFNet, this is its "long haul" subsidy which
it does not have to build/maintain/operate.
This subsidy is very substantial factor in networks that are essentially
MAN's (like NEARNet and BARRNET) vs others which have to cover in some
appropriate manner long haul "core" bandwidth on their own nickle, this
is true of regionals like SURANET and definitely true of the national
mid-levels like ALTERNET, PSINet.
Marty
----------
>Since the current regionals are subsidized directly through $'s or
>indirectly by getting free T3 long-distance (temporarily at least),
>it is difficult to project prices since they do not reflect expenses.
There is at least one regional, NEARnet, which is not subsidized; its
rates reflect its expenses.
Alex McKenzie
