US/ND-1: Re: Tech Support and Long Term Funding

Re: Tech Support and Long Term Funding

Steve Kohn (NOTES.SKOHN@A50VM1.trg.nynex.COM)
28 Aug 1996 22:24:22 GMT 

> Date: Wed, 28 Aug 1996 09:21:24 -0400 (EDT)
> From: Miles R Fidelman <fidelman@civicnet.org>
> X-Sender: fidelman@world.std.com
> Subject: universal service vs. public sector service
> Message-Id: <Pine.SGI.3.93.960828091514.12774B-100000@world.std.com>
> 
> Just a quick comment to note that there is a big difference between
> universal service and service for libraries, PEG stations, schools, etc.
> 
> Universal service is like the telephone:  everyone has it and it's
> relatively cheap.  The best model for universal advanced service is a
> university or corporate campus, where there is a "data wall plug" next to
> every telephone jack.  On the MIT campus, for example, a 24-hour, high
> speed connection to the campus network (and through it to the Internet)
> costs around $25/mo. -- That's the kind of service I'd like to my home
> office (or classroom, or library).
>
> For this kind of universal service to exist, at modest cost, economies of
> scale have to be exploited -- we're talking about building network
> utilities akin to telephone, water, sewer, electric systems - i.e.
> infrastructure.
> 
> By contrast, much of the talk about free (subsidized) access for schools,
> etc., implies that the commercial vendors will focus their efforts on the
> largest, most profitable markets (i.e. "cream skimming), and throw a bone
> to the rest of us in the way of free service in a few locations. 

This is an excellent point.  If telecommunication carriers reimbursement
is below costs, schools and libraries will not be perceived as 
attractive markets.  BUT, if telecommunications carriers are reimbursed
to a cost+ level, schools and libraries will be seen as an attractive
market to participate in.

Steve

> Don't get fooled by what looks like a good deal.  Cream skimming plus free
> service for schools and libraries translates to not very much service for
> homes, small businesses, small non-profits, etc.
> 
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