answers to query How does Korea and Japan price ? -- Charging by the Byte to Curb Internet Traffic

[David Farber <dave () farber net>]

________________________________________
From: Tom Vest [tvest () eyeconomics com]
Sent: Monday, June 16, 2008 11:11 AM
To: David Farber
Cc: ip
Subject: Re: [IP] How does Korea and Japan price ?  -- Charging by the Byte to Curb Internet Traffic

In Japan broadband is "flat-flat" rate -- i.e., no volume-related IP
service charges, and no time-based facilities fees, just a straight
monthly subscription fee -- with the speed/capacity largely varying by
medium (copper/DSL, HFC/cable, FTTH).

In Japan as in many other economies that would have to wait for full
unbundling/structural separation to achieve the competitiveness boost
that the US enjoyed as a result of the Telecom Act of 1996, metered
dialup was the dominant (and very expensive) access method until 2000.
DSL and cable internet access were available but pricy until mid-late
2001, when Softbank/YahooBB jumped at the opportunity to capitalize on
Japan's new (actually, second attempt) access and metro facilities
unbundling mandate to deploy super-fast, super-affordable DSL. Looking
back at some old press accounts confirms my own personal recollections
-- e.g., according to Ken Belson ("Fast Connections Catch on In
Japan", International Herald Tribune, 6 May 2003):

"In a contrast with South Korea... most Japanese providers have
piggybacked on NTT's optical fiber network rather than build their
own. That was made possible because of industry pressure on NTT to
lower its fees for others to use its equipment. Once that happened in
early 2001, prices to consumers fell by half and the number of
subscribers soared."

Tom Vest
(Tokyo-based operations manager for AOLTW/ATDN Asia Pac, 2001-2003)



On Jun 16, 2008, at 10:16 AM, David Farber wrote:

> ________________________________________
> From: Olan, Michael [Michael.Olan () stockton edu]
> Sent: Monday, June 16, 2008 10:10 AM
> To: David Farber
> Subject: RE: [IP] Re:   THE IMPACT ON ADVERTISEMENT ON THE NET --
> Charging by the Byte to Curb Internet Traffic
>
> Dave,
>
> Could someone on your list or you yourself fill us in on how Japan and
> Korea do their pricing? As I understand it, they have huge pipes into
> the home at significantly cheaper rates than we have here.
>
>
> -----
> Michael Olan
> Richard Stockton College
> Pomona, NJ 08240
>
>
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