North American Network Operators Group

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Re: [Latest draft of Internet regulation bill]

  • From: Sean Donelan
  • Date: Fri Nov 11 00:59:43 2005

On Fri, 11 Nov 2005, Christopher L. Morrow wrote:
> oops ;) my point wasn't that bandwidth wasn't necessary over X speed, it
> was that the main motivator for consumer purchase was no long bandwidth
> but price alone.

In 1997, Vint Cerf was advocating the necessity of usage based pricing
when he was still with MCI.
  Although MCI has not yet made a formal announcement via a press release,
  Cerf explained that "we are plainly discussing this with you, Gordon,
  and your readers." The MCI move is the outcome of what Cerf describes
  as a crunch between the Internet's flat rate pricing model and usage
  patterns where both the amount of use and disparity between use by
  applications has increased dramatically.

Will consumers prefer to pay higher flat rate charges for everything, or
prefer different pricing models when they access applications which
require dramatically different service levels to include the cost as
part of an application specific fee?