[9122] in Commercialization & Privatization of the Internet
Re: The Buffalo Free-Net / NYSERNet / PSI problems
daemon@ATHENA.MIT.EDU (bukys@cs.rochester.edu)
Sat Dec 18 07:41:27 1993
Date: Sat, 18 Dec 1993 07:02:19 -0500
From: bukys@cs.rochester.edu
To: com-priv@psi.com
It doesn't matter what the marginal cost is, if the Buffalo/NYSERNET
and/or NYSERNET/PSI contracts said that re-sale is out, including
UUCP email relays and public access systems, then the decision was
made when the contracts were signed. Marty already said that a lot
of their business is retail, and "free" access from a University can
be tough competition. NYSERNET presumably gets something in exchange
for agreeing not to compete for retail customers -- eg. lower charges.
If the FreeNet were a paying customer that would be different, and
would be governed by THEIR contract with their network provider.
If PSI is not willing to let any of their actual customers provide public
access, I'd say that's a business mistake, as there is a BIG retail niche
that PSI's current offerings don't fill in my city. But there are other
network providers a public access business could buy from.