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IP: who won the US Revolution? The English (BT) may win it all
From: Dave Farber <farber () cis upenn edu>
Date: Mon, 04 Nov 1996 15:08:25 -0500
MCI PONDERS NEW INTERNET PRICING SCHEME MCI, which currently carries an estimated 90% of all U.S. Internet traffic, is considering replacing its flat-payment schedule with a new pricing scheme based on how much data is transmitted over its lines. The company says flexible pricing will allow it to accommodate what it terms "value-added" services such as real-time videoconferencing, 3-D graphics and Internet voice calling. The company hopes that by charging more for services that take more time, overall efficiency will be improved. "I think that pricing so as to assure that increasing capacity can be paid for is vital," says MCI Senior VP Vint Cerf. "Ultimately, it must be the case that the pricing covers the cost of service -- and in circumstances where usage is not stable but growing, one needs to price according to use. While I am a strong advocate of flat-rate methods to stimulate market development, I think one has to be realistic about relating price to cost." source: Electronic Engineering Times October 29, 1996
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