[9679] in Commercialization & Privatization of the Internet
Re: Telecommunications Competition Act of Washington State
daemon@ATHENA.MIT.EDU (John Rugo)
Sun Jan 16 11:05:09 1994
To: stpeters@dawn.crd.ge.com
Cc: adamfast@u.washington.edu, karl@mcs.com, com-priv@psi.com,
In-Reply-To: Your message of "Sat, 15 Jan 1994 15:06:15 EST."
Date: Sun, 16 Jan 1994 11:02:46 -0500
From: John Rugo <jrugo@nic.near.net>
Dick,
I might go a tad further to say that what we get for lower prices is not
telephone service - its connectivity! If you want more than connectivity,
you have to pay for services such as operator support, directory assistance,
etc...then you have to pay. It is simply unbundling. It also creates
competition in the market along the lines of service - that's why the IXC
carriers promote themselves differently. Some compete on price, others on
value. Consumers of telephone connectivity and service can choose based on
their preference.
An interesting observation is that people, including legislators and some
consumers, don't seem to understand the differentiation in services. Most seem
fixated on physical things - like bringing two wires into your home. But,
people do seem to notice when they don't get the service they expect, despite
paying lower prices. However, competitors in the market understand them quite
well, because they understand the costs of providing services.
Rather odd, isn't it, that the same thing seems to be going on in the market
for Internet "services". Caveat Emptor - what you may be purchasing is
connectivity and not service.
John M. Rugo
Vice President and
Chief Operating Officer
BBN Technology Services Inc.
NEARNET is a service mark of BBNTSI
