[8313] in Commercialization & Privatization of the Internet
Re: FCC regulation of Internet service providers
daemon@ATHENA.MIT.EDU (Marvin Sirbu)
Sat Nov 13 13:13:32 1993
Date: Sat, 13 Nov 1993 13:12:27 -0500 (EST)
From: Marvin Sirbu <ms6b+@andrew.cmu.edu>
To: com-priv@psi.com
Cc: com-priv@psi.com
In-Reply-To: <9311130244.aa14079@pandora.sf.ca.us>
Excerpts from internet.com-priv: 13-Nov-93 Re: FCC regulation of Inter..
by Gordon Cook@path.net
> I was relating my recollection of how he explained the law to me. That
> included the assertion that *before the law* access to a service provided
> by an enhanced service provider was what counted and if *one* service were
> to become difficult or too expensive to use, the *law* said that did not
> consitutute a problem or violation because other services would still be
> available and presumably affordable. A service was a service was a service
> - ie prodigy and compuserve and internet were all services and hence equated
> to the same thing in the eyes of the law.
Gordon,
You need to focus on the essence of Bob Pepper's comments and not the
particular example he gave, which is, as you point out, comparing apples
and oranges. Suppose he had said, "If IP service from PSI became
difficult or too expensive to use, the law says this does not constitute
a problem or violation
becuase other services such as Sprintlink or Alternet would still be
available and presumably affordable."
The point is, current policy relies on competitive market forces to
insure the availability and low cost of services. If current services
are priced far above cost, then there is room for a competitor to come
in and offer service at a lower price and still make a profit.
Notice that competition does not insure low prices in any aboslute
sense. There is lots of competition in the market for Personal
Computers, but nobody is selling them at $9.95. However, hey are
selling them at fairly small markups above cost, and working hard to
continue to lower cost through innovations in product design, marketing
and distribution.
Similarly, IP service is currently expensive on an absolute scale for
individuals and small institutions, but many firms are working hard to
find ways to lower the cost so that the services can be provided more
cheaply. They must do so, because if they don't and their competitors
do, the laggard will go out of business.
Marvin Sirbu
