[Politech] Andrew Odlyzko on pricing and architecture of the Internet

From: Declan McCullagh (declan@private)
Date: Thu Jan 01 2004 - 21:55:31 PST

  • Next message: Declan McCullagh: "[Politech] Adrian Lamo, hacker-turned-journalism-student, speaks"

    ---
    
    Date: Mon, 29 Dec 2003 20:17:59 -0600 (CST)
    From: Andrew Odlyzko <odlyzko@private>
    To: Andrew Odlyzko <odlyzko@private>
    Subject: FYI: paper on pricing and architectures for the Internet
    
    
    Dear Colleagues,
    
    You might be interested in the following paper that I have just
    completed.  Comments would be greatly appreciated.
    
    Andrew Odlyzko
    
    
    
    
    Title: Pricing and architecture of the Internet: Historical perspectives
    from telecommunications and transportation
    
    URL: <http://www.dtc.umn.edu/~odlyzko/doc/pricing.architecture.pdf>
    
    
       Abstract:  With telecommunications in a slump, the search is on for
       ways to re-invigorate this key industry.  The main problems are clearly
       economic much more than technological, and many of the proposed remedies
       would lead to new architectures for the Internet that would provide for
       greater control by carriers.  They would drastically reduce the role of
       the end-to-end principle, the main foundation for the success of the
       Internet, in which functionality resides at the edges of the network.
       The proposals to restrict voice over Internet (VoIP) are just one part
       of this trend.
    
       Historical precedents from telecommunications for introduction of
       differentiated services and sophisticated charging methods on the Internet
       are discouraging.  The almost universal trend has been towards decreasing
       price discrimination and simpler pricing.
    
       The history of transportation presents a different picture, with frequent
       movements towards increasing price discrimination and more complicated
       pricing (although with many noteworthy reversals).  Charging according to
       the nature of the goods being transported has been and continues to be
       the norm.  Since the incentives to price discriminate are increasing,
       and the ability to do so is also growing, it is conceivable that
       telecommunications might break with its historical record and follow
       the example of transportation.  It is therefore of interest to examine
       the evolution of pricing and quality differentiation in transportation.
    
       Some historical sketches on the evolution of pricing in transportation
       are presented.  Their implications for telecommunications, and especially
       for Internet pricing and architecture, are discussed.
    _______________________________________________
    Politech mailing list
    Archived at http://www.politechbot.com/
    Moderated by Declan McCullagh (http://www.mccullagh.org/)
    



    This archive was generated by hypermail 2b30 : Thu Jan 01 2004 - 22:54:00 PST