[9136] in Commercialization & Privatization of the Internet
Re: The Buffalo Free-Net / NYSERNet / PSI problems
daemon@ATHENA.MIT.EDU (John Galloway)
Sat Dec 18 18:22:26 1993
From: John Galloway <jrg@rahul.net>
To: bmanning@is.rice.edu (William Manning)
Date: Sat, 18 Dec 1993 15:21:24 -0800 (PST)
Cc: tenney@netcom.com, com-priv@psi.com
In-Reply-To: <9312180325.AA10621@brazos.is.rice.edu> from "William Manning" at Dec 17, 93 09:25:54 pm
Reply-To: jrg@galloway.sj.ca.us
>
> 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.
This is not _necessiarly_ so. XYZ may not be interested in the same market
as the small provider. The small provider can register his own customers
and participate in DNS services (though some help like a mirror might
be needed from XYZ). For example XYZ might not be interested in
offering low speed SLIP/PPP serivces to customers who can manage the
link themselves since offering a "no support" product might tend to put
XYZ in a bad light to its high end customers.
-jrg
--
internet jrg@galloway.sj.ca.us John R. Galloway, Jr 795 Beaver Creek Way
applelink D3413 CEO...receptionist San Jose, CA 95133
Galloway Research (408) 259-2490
