[9338] in Commercialization & Privatization of the Internet

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Re: Cost vs benefit of internet services

daemon@ATHENA.MIT.EDU (Michael P. Martineau)
Wed Dec 29 17:36:29 1993

Date: Wed, 29 Dec 1993 18:36:29 -0400
To: matthew@echo.com (Matthew Kaufman), com-priv@uu.psi.com,
From: martinea@hawk.nstn.ns.ca (Michael P. Martineau)

At 12:29 PM 12/29/93 -0800, Matthew Kaufman wrote:
>
>Wouldn't it be nice if there weren't such artifically-constructed
>barriers to entry to IP resale, so that you really COULD get
>together with your small number of friends and get a line and
>share it?

There are costs associated with providing Internet access.  Many 
organizations, such as ours, price their services based on single 
organizations or individuals (in the case of dial-up services).  Assumptions 
are made as to the number of customers we can get.  If apply the same prices 
to others who wish to be resellers we would not be able to stay in business. 
 Why should other organizations who wish to offer Internet access get a 
break because we have kept our prices low to attract a large number of 
users?  Why should we, in effect, subsidize a competitor?

By the way, we offer dial-up slip to individuals for $5/hr (daytime), $1/hr 
(nights), with a $25/mo minimum charge.

--

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* Michael P. Martineau                  Phone: (902)-468-6786           *
* President, NSTN Inc.                  FAX:   (902)-468-3679           *
* 900 Windmill Rd., Suite 107                                           *
* Dartmouth, Nova Scotia                                                *
* B3B 1P7                                                               *
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