[651] in Commercialization & Privatization of the Internet

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NREN cost justification?

daemon@ATHENA.MIT.EDU (Adam M Gaffin)
Tue Apr 30 10:24:35 1991

Date: Tue, 30 Apr 91 10:19:42 -0400
From: adamg@world.std.com (Adam M Gaffin)
To: com-priv@uu.psi.com

I attended a conference at Boston University last week on NREN. As an 
NREN novice, I found it very informative, but also a bit disturbing 
(enough so to write something for my paper's business section :-) ). 
 
Stephen Wolff from the NSF and Kenneth King of Educom both went on at 
considerable length about the benefits of the project (you know: doctors 
swapping X-rays, researchers using distant supercomputers to plumb the 
mysteries of the universe and that little girl in Tennessee browsing the 
catalog at the Library of Congress). 
 
Wolff essentially said he sees the government's role in all this as 
setting the network up, getting everything settled and then turning it 
all over to private industry (he said it more eloquently than that, and 
with a bit more humor than that, though). 
 
As Wolff noted, there is now an established, and growing commercial 
interest in Internet-like services (PSI, for example) and high-speed data 
networks (Nynex is working on a pilot 45-Mbps system with some Boston 
teaching hospitals). 
 
If that is the case, then, wouldn't Gore's bill really just amount to a 
huge subsidy for whichever companies (IBM and MCI?) lucky enough to get 
the contract to run NREN? If commercial clients are demanding high-speed 
data services, won't some company come along and provide it for them? 
Given that such a network has some potentially lucrative bonuses (digital 
TV transmission, anyone?), why should taxpayers pay for this? After all, 
this isn't 1969, when nobody thought there was any future in packet 
networks. 
 
Wolff said the government is going to wind up subsidizing any high-speed 
network no matter what, because the researchers at whom it will first be 
aimed would only include the costs of network access in future grant 
proposals. Maybe, but shouldn't the companies that stand to benefit the 
most from this privatization pay more of the upfront costs? 
 
Or am I all wet on this?
 
Thanks!
 
Adam Gaffin
Middlesex News, Framingham, Mass.
adamg@world.std.com
Voice: (508) 626-3968. Fred the Middlesex News Computer: (508) 872-8461
 

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