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Politics : Ask Michael Burke
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To: gnuman who wrote (75564)2/10/2000 2:18:00 PM
From: Don Lloyd  Read Replies (1) of 132070
 
Gene -

[[...I assume those building the infrastructure aren't giving it away. Bandwidth ain't free for the users. Seem's to me the more bandwidth the more revenue. And once the plant is in place is should be a real cash generator. Considering the billions required to build the infrastructure, it ain't like starting a dot.com business.]]

Once the infrastructure is in place, it is a sunk cost and the marginal cost is essentially zero. The price will then be that which is believed to maximize revenue and will then depend on consumer valuations and how many competitive suppliers survive to slowly go out of business.

Regards, Don
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