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RE: GTE BBN - Rand originated BUSINESS MODEL discussion

  • From: Mike Leber
  • Date: Sat Aug 22 14:37:44 1998

On Sat, 22 Aug 1998, Richard Irving wrote:
> Obviously I am missing something..( I may be naive on this)
>  Why would you want to charge hosters for hits ? (seriously !)
> Next "Lata" (Peer AS's ?) transactions should go to the owner of the
> physical.

Transaction based settlements in either direction encourage waste.

Previously Michael Dillion was proposing settlements where you subtracted
transmitted bytes/packets/sessions from received bytes/packets/sessions
(or dialup provider earns money from settlements, web hosting company
pays). 

It sounds like you are proposing settlements based on subtracting received
from transmitted (or dialup provider pays, web hosting company earns). 

Again, all it takes is a simple application of the slightest imagination
and again you end up incentivizing bad behavior.  In your scenario the web
hosting company now has an incentive to pay clients more based on the size
and/or number of graphics or files transferred per page, which would
result in massive waste. 

Too simple?  Ok, imagine web pages with 24 hour sound files, or 24 hour
vivo or quicktime files, or continously refreshing web pages all
generating additional revenue instead of being merely an expensive use of
bandwidth.

Mike.

+------------------- H U R R I C A N E - E L E C T R I C -------------------+
| Mike Leber             Direct Internet Connections     Voice 408 282 1540 |
| Hurricane Electric      Web Hosting & Co-location        Fax 408 971 3340 |
| mleber@he.net                                           http://www.he.net |
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