On Tue, 22 Jan 2008, Tom Vest wrote:
Okay I concede that point; competition within markets with only metered
service options can be just as or even more vigorous then competition within
unmetered markets. But competition between metered and unmetered markets
tends to reward the latter, and competition within mixed markets tends to
reward the latter. Moreover, to whatever degree that metering reduces usage,
and usage is related to innovation, the unmetered markets are likely to grow
and evolve faster.
Maybe flat-rate access is "objectively" unsustainable in some markets,
regardless of what (potentially self-interested) proponents claim. Maybe it
is sustainable, even in the "long run", despite what (potentially
self-interested) critics claim. One thing is certain: to date, only a handful
of companies (Internet, wireless voice, or POTS) have *ever* stepped up to
any flat-rate service voluntarily. The vast majority of flat-rate providers
in business today were just as skeptical, and just as implacably opposed to
the idea, right up to the point that competition forced them (and permitted
us) to discover that they were wrong. At least that's what happened in Japan,
in the UK, and yes in the US and many other places too.
If you beleive it is inevitable, why do you care what other people do in
the mean time. If you are correct, they will eventually loose and go
away.
Let them try it and see what happens. Why pre-judge the results?