[9120] in Commercialization & Privatization of the Internet
Re: The Buffalo Free-Net / NYSERNet / PSI problems
daemon@ATHENA.MIT.EDU (William Manning)
Fri Dec 17 22:26:33 1993
From: bmanning@is.rice.edu (William Manning)
To: tenney@netcom.com (Glenn S. Tenney)
Date: Fri, 17 Dec 1993 21:25:54 -0600 (CST)
Cc: com-priv@psi.com
In-Reply-To: <199312180257.SAA14279@mail.netcom.com> from "Glenn S. Tenney" at Dec 17, 93 06:56:55 pm
Glenn S. Tenney
>
> Why not just use the net as a real example and tell what the marginal cost
> would be if:
>
> I buy a T1 link from XYZ company; I pay for the routers, phone lines,
> whatever; I agree to pay XYZ based on the size of my pipe. What is the
> marginal cost to XYZ if I have 1 or 100 machines on my end of the pipe, or
> if my one machine has 1 or 1000 users (my users or customers never even
> know about XYZ, they don't even know who I buy my pipe from)?
>
Lost income. You are in the same market at XYZ. You are taking customers
away from them.
Other than that, given the contraints you list above, not a whole lot. But
it -never- stops there. XYZ will be asked to process number advertisment,
DNS registrations, connections problems that are not solvable by your staff
and the list goes on. For these activities, and the lost income, XYZ
should be compensated for.
--
Regards,
Bill Manning bmanning@rice.edu PO Box 1892
713-285-5415 713-527-6099 Houston, Texas
R.U. (o-kome) 77251-1892
