[9138] in Commercialization & Privatization of the Internet
Re: The Buffalo Free-Net / NYSERNet / PSI problems
daemon@ATHENA.MIT.EDU (Ed Tully)
Sat Dec 18 19:24:20 1993
From: tully@cscns.com (Ed Tully)
To: postman@lists.psi.com (Barry Shein)
Date: Sat, 18 Dec 93 17:20:52 MST
Cc: fidelman@civicnet.org, com-priv@psi.com
In-Reply-To: <199312182324.AA21941@world.std.com>; from "Barry Shein" at Dec 18, 93 6:24 pm
I amsure you all know that even if you have a T1, you can only send to the
net as fast as the receiving pipe can take it. So if a T1 is sending a
message over the net, and the receiving pipe is a 56k, the max rate the T1
will send pakets is 56k. The reason I bring it up here is there never
seems to be any accomodation for that in discussing price, etc. ???
>
>
> >From: Miles R Fidelman <fidelman@civicnet.org>
> >Its worth noting that the Internet exists precisely because the telcos,
> >by law, MUST allow resale of leased facilities. If regional networks,
> >for example, had to pay the telcos for each user of a leased line (and
> >maybe every packet to boot), then the Internet as we know it would not
> >exist. This also extends to, say, the World: Barry, how would you like
> >to pay for your Alternet access lines by the user or by the packet? :)
>
> It would certainly change our rate structure for access to the
> internet and, presumably, everyone else's (i.e. every other public
> access provider.)
>
> Not sure what your point is, other than there might be less customers
> at a higher rate. But that alone is not a predictor of success or
> failure. Actually, for all I know per-packet charging as you describe
> might cost less for what we do. There are several assumptions in your
> statement that need examination. T1's etc aren't exactly free now, and
> I assume their prices are at least partially based on the reserved
> rather than actual bandwidth used. Although we have a few T1's and a
> few dozen 56k's here etc we hardly see them even close to 100%
> utilization, so who knows?
>
> >The telcos have noticed this lost revenue of late -- witness their
> >attempts to get into the business of charging per packet on ISDN packet
> >services,
>
> To be perfectly frank, I have not really noticed any such attempt, at
> least not with ISDN.
>
> It looks to me more like they're very occasionally being dragged
> kicking and screaming and making it as unattractive as possible as if
> they don't want such customers. And that seems to gibe with the total
> lack of enthusiasm I've seen from my vendors when the issue has come
> up (i.e. Nynex, NE TelCo.)
>
> Anyhow, I'd be hard pressed to guess *what* the TelCos are thinking
> about all this. There certainly are also advantages to picking up
> those T1 leased line fees predictably every month without any detail
> billing etc. I'd have to know more about their own costing and
> overhead models to comment.
>
> -Barry Shein
>
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