[9322] in Commercialization & Privatization of the Internet
Re: Metered vs Flat Rates (was: an Internet buying coop?)
daemon@ATHENA.MIT.EDU (Einar Stefferud)
Wed Dec 29 05:16:47 1993
To: com-priv@psi.com
In-Reply-To: Your message of "Sun, 26 Dec 1993 18:56:15 MST."
Reply-To: Stef=com@nma.com
From: Einar Stefferud <Stef=com@nma.com>
Date: Tue, 28 Dec 1993 21:55:15 -0800
I have to admit that my basis is common sense in that the model is
clear in the abstract, though of course with enough customers to
satisfy the statistical laws of large numbers and experience to fold
into behavioral models, it is clear that the risks can be easily
managed by the likes of TELCOs. I shoulda seen that coming;-).
>From Ed Tully's message Sun, 26 Dec 93 18:56:15 MST:
}
}Stef,
}
}what is the source of your statements? normal business sense? I have ben
}associated with the industry a long time - underutilization went away a
}long time ago. the telco has sufficient history to charge for metered
}service and not transfer the risk.
}
}I would appreciate your reply to the question of the backup of your
}statements. And this is not a flame. Just want some moreinfo.
}
}Ed Tully
But, as also noted by someone, in the IP dialtone market, we do not
have anywhere near those numbers of customers or that many years of
experience, so I expect that the risk of underutilization of IP
dialtone is not so trivially managed.
So, I expect the effect is with us in the IP dialtone market.
It is certainly going to be there in the small local community service
provider business;-). So, as I suggested, this might explain some of
the reasons for flat fee IP dialtone service being offered and
purchased at this time.
Thanks for the questions and comments...Happy New Year!...\Stef
