North American Network Operators Group
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Re: Lessons from the AU model

  • From: Sean Donelan
  • Date: Tue Jan 22 13:33:32 2008

On Tue, 22 Jan 2008, Tom Vest wrote:
Okay I concede that point; competition within markets with only metered service options can be just as or even more vigorous then competition within unmetered markets. But competition between metered and unmetered markets tends to reward the latter, and competition within mixed markets tends to reward the latter. Moreover, to whatever degree that metering reduces usage, and usage is related to innovation, the unmetered markets are likely to grow and evolve faster.

Maybe flat-rate access is "objectively" unsustainable in some markets, regardless of what (potentially self-interested) proponents claim. Maybe it is sustainable, even in the "long run", despite what (potentially self-interested) critics claim. One thing is certain: to date, only a handful of companies (Internet, wireless voice, or POTS) have *ever* stepped up to any flat-rate service voluntarily. The vast majority of flat-rate providers in business today were just as skeptical, and just as implacably opposed to the idea, right up to the point that competition forced them (and permitted us) to discover that they were wrong. At least that's what happened in Japan, in the UK, and yes in the US and many other places too.

If you beleive it is inevitable, why do you care what other people do in the mean time. If you are correct, they will eventually loose and go away.

Let them try it and see what happens. Why pre-judge the results?