[8328] in Commercialization & Privatization of the Internet

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Re: Follow-up ON DIGEX, ANS & CIX

daemon@ATHENA.MIT.EDU (Russell Nelson)
Sun Nov 14 00:50:58 1993

Date:      Sun, 14 Nov 1993 00:17:57 EST
From: "Russell Nelson" <nelson@crynwr.com>
To: "Rob Raisch, The Internet Company" <raisch@internet.com>
Cc: com-priv@psi.com

On Sat, 13 Nov 1993 13:46:57 -0800 (PST), "Rob Raisch, The Internet Company" <raisch@internet.com> wrote:
>
> Ahhh.... the settlements issue.  This will prove to be the death of the 
> Internet we have grown to love.

Imminent death of the net predicted.

> A simple scenerio, (and if I am wrong in  this, please tell me.  I
> would love to be completely pig-ignorant of the  real ramifications
> here.  I fear I am bang on.) --
> 
> 	Network A wishes to have access to Network B, so...
> 
> 	Network A *and* Network B contract with a Inter-NAP connectivity 
> 	provider.  A and B share the costs (settle) based on how badly they
> 	wish to have access to each other's network and customer base.
>
> 	Enter Network C -- 15 customers, small entrepreneurial companies all.
>
> 	Network C wishes to have access to Network B, but Network B has no
> 	incentive to share the costs for the inter-NAP traffic, based on the
> 	the lack of any real value access to Network C brings to the table.
> 	Bzzzzzzzt!  Wrong answer.
> 
> 	Network C wishes to share costs with Network A to get to Network B.
> 	But Network A and Network C share the same market.  Bzzzzzzzt!
> 	Wrong answer.
> 
> 	Suddenly, Network C is placed in a position of having to pay for
> 	*ALL* inter-NAP costs to get ANYWHERE!

Do you think the CIX was created just for kicks?

Okay, so Network C connects with network D, which has already
contracted for access to networks A and B.  A get a clue, and
contracts directly with C for access to B, or maybe E comes along and
sees that D is charging C enough for E to SLIP in underneath.

-- 
-russ <nelson@crynwr.com>      ftp.msen.com:pub/vendor/crynwr/crynwr.wav
Crynwr Software   | Crynwr Software sells packet driver support.
11 Grant St.      | 315-268-1925 (-9201 FAX)       | Quakers do it in the light
Potsdam, NY 13676 | LPF member - ask me about the harm software patents do.

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