IP: who won the US Revolution? The English (BT) may win it all

[Dave Farber <farber () cis upenn edu>]

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