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Re: [Latest draft of Internet regulation bill]
On Nov 12, 2005, at 6:48 PM, Christopher L. Morrow wrote:
Is cost-based regulation so bad for critical, non-substitutable infrastructure? That's how the US market got flat-rate Internet access.Are you suggesting a return to cost-based regulation? At one time airlineNo, I'm not, actually I think that the answer to my question was: "All
Is flat-rate the same thing as "making some people pay for more than they want"?
There no such thing as a market price for critical, non-substitutable infrastructure. Most markets/regulatory jurisdictions around the world don't have / never had any cost-based pricing requirements for network infrastructure, and in most of those markets the "market price" of infrastructure inputs is somewhere between 90-200% of the projected revenue potential that the infrastructure creates. That's why there are so few operators/ASNs in most countries -- there's very little upside for non-telcos -- and one of the reasons that markets like the US spawned so many infrastructure users.MCI Friends & Family charged different rates for phone calls dependinggood question, I think all of the examples though have on thing in common:
That may be where the Internet is headed in the absence of some major trend shift, but is that where it should go, where we want it to go?