[ppml] ARIN member in good standing?
tvest at pch.net
Thu Oct 12 14:43:41 EDT 2006
On Oct 12, 2006, at 1:31 PM, Peter Sherbin wrote:
>> Or, put another way, I don't understand the problem
> The model aims at identifying a fundamental *cost driver* on the
> Internet, e.g. a
> certain amount of electrons carrying data from the origination
> point to its
> destination. Subsequent arrangements will follow naturally shaped
> by whichever local
Are you suggesting that incremental cost of service delivery should
the basis for pricing inter-provider network services?
Would that rule also apply to provider-to-end customer pricing?
Should costs define the upper as well as lower limit for pricing?
Who calculates what costs "really" are?
You proposal suggests to me that you don't think the market is taking
care of at least some elements of this equation now -- i.e., that
pricing is "irrational" in the economic sense. Could this perception
be based on the fact that some pricing and "arrangements" are based
on regional/global rather than locally bounded circumstances?
Put another way, doesn't your proposal entail the elimination of
bypass and the restoration of closed territorial markets (aka "local
circumstance sovereignty") that only exchange traffic at the border?
Do you think that markets like that -- there are still many many
around the world -- are more rational, and should be emulated?
Forgive my cognitive dissonance, but we got to where we are today
because globalization (erosion of local market sovereignty) exposed
places with different prices and cost structures to pressure from the
prices and cost structures of other places, i.e., "competition." Your
proposed goal of exposing cost drivers is redundant if local costs
continue to be subject to extra-local competition, and your proposed
mechanism for exposing costs would almost certainly devolve into a
mechanism for eliminating such competition.
Or am I missing some element that might forestall this outcome?
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