To: jvncnet!world.std.com!ddern@dowv
cc: online-news@marketplace.com
In-Reply-To: <199409301818.AA17325@world.std.com>
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On Fri, 30 Sep 1994 jvncnet!world.std.com!ddern@dowv wrote:

> Dan Peak asks:
> > Does anyone know of any newspapers who are in the business of providing 
> > Internet connections?
> > Do they offer the connection as part of their online service or as a 
> > separate service?
 
> Not to mention any newspapers who offer telephone service and are running
> local COs, or long haul nets.  Can't anybody keep track of what business
> they are -- and aren't -- in any more?
 
> This isn't a shot at you, Mr Peak, by any means.  I think that companies
> have lost sight of the difference between CAN (e.g., hardware is cheep)
> and SHOULD (e.g., a sensible idea).  Can you say "outsource!" ?

Actually, isn't part of being a news publisher the effective gathering,
editing, and distribution of news?  Some small newsletters use PIP or some
other local printer to print the paper.  Dow Jones and USA today have
their own sattellite feeds to each of their local printers.  It really
comes down to economies of scale.

On the other hand, Sprintnet, Telenet, and Tymnet all have POPs at Dow Jones'
South Brunswick location, but we don't tell them how to run their nets.

When the internet first went commercial, Colorado Supernet contracted with
the Universities to rent closet space.  They provided internet service and
support in exchange for closet space and leased lines.  They added their
own modem banks and terminal servers to provide pops in each of Colorado's
3 LATAs.

On the east coast, there are so many LATAs that even to call someone less
than a mile away is a toll call.

> This becomes increasingly noticeable as, say, vendors offer resale of
> online presence, as publishers offer to be marketeers, etc.   E.g., 
> (hypothetically) NEARnet, Alternet/Uunet, or PSI offer to partner and
> provider information feeds, umm, like Reuters newswire, or Commerce
> Business Daily.  Say you're NOT an Internet Connectivity Provider, and
> want to see one or more of these as a product.  Do you feel your choices
> are suddenly constrained?

Most of these partnering arrangements are as natural as getting a printing
press for the Daily.  If there are going to be 500 dial users in the
locality getting their paper from you, it makes sense to put the modem
bank where you can give them the highest possible service (ethernet, token
ring,...) at a relatively low cost (compared to 40 mile T1 to NYC or Philly)
 
> Everyone wants to start up a provider; unfortunately, few of us are
> Karl Denninger.

Actually, it is incredibly easy to become a provider.  It's interesting
how Karl has placed so many contractual restrictions on secondary services.
Technically, I can put up a server for about $3000.  Legally, CIX provider
agreements will run me another $7000/year.  Of course, if I can get an
extra 2000 users at $30/month, it is worth a few extra dollars for the
distributor contract.


> DPD
> Daniel Dern (ddern@world.std.com) Internet analyst, technology/business writer

Rex Ballard rballard@cnj.digex.net Internet pioneer. Information Systems
Retailer, and Electronic Publishing Engineer. 
	(Personal Posting)



From rexb Thu Oct 27 14:07:37 1994