We think the development of the future broadband Internet with mechanism for accounting and usage-sensitive pricing will also require government involvement … Customer demand for low-delay uncongested networks will give providers an incentive to implement some form of congestion-control pricing, but individual network providers will probably not choose to implement such methods unless there is coordination in standards and widespread adoption of the mechanism. We think that there is an important role for public and quasi-public bodies in designing coordinated policies and protocols for congestion control, accounting and usage-sensitive pricing.
Predictor: MacKie-Mason, Jeffrey K.
Prediction, in context:The 1995 book “Public Access to the Internet,” edited by Brian Kahin and James Keller carries the chapter, “Pricing the Internet” by Jeffrey K. MacKie-Mason and Hal R. Varian. MacKie is an associate professor of economics and Varian is a professor of economics at the University of Michigan. They write: ”The current Internet has developed through a collaboration between the private sector and governments; we think the development of the future broadband Internet with mechanism for accounting and usage-sensitive pricing will also require government involvement. The NSF is moving the Internet backbone away from the ‘interstate’ model toward the ‘turnpike’ model, as evidence by the emergence of private-sector backbone competitors. The ‘Interstate’ approach is for the government to develop the ‘electronic superhighways of the future’ as part of an investment in infrastructure. The ‘turnpike’ approach relies on the private sector to develop the network infrastructure for Internet-like operations with the government providing subsidies to offset the cost of access to the private networks. We believe an intermediate solution is necessary … Customer demand for low-delay uncongested networks will give providers an incentive to implement some form of congestion-control pricing, but individual network providers will probably not choose to implement such methods unless there is coordination in standards and widespread adoption of the mechanism. We think that there is an important role for public and quasi-public bodies in designing coordinated policies and protocols for congestion control, accounting and usage-sensitive pricing.”
Date of prediction: January 1, 1995
Topic of prediction: Information Infrastructure
Subtopic: Cost/Pricing
Name of publication: Public Access to the Internet (book)
Title, headline, chapter name: Pricing the Internet
Quote Type: Direct quote
Page number or URL of document at time of study:
Pages 299, 300
This data was logged into the Elon/Pew Predictions Database by: Guarino, Jennifer Anne