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Strategies & Market Trends : Internet Tariffs...Coming Soon? -- Ignore unavailable to you. Want to Upgrade?


To: Jorj X Mckie who wrote (8)1/24/1999 10:09:00 PM
From: EL KABONG!!!  Read Replies (2) | Respond to of 36
 
Jorj,

I don't really see that scenario happening. It would be far too difficult for the average Joe to figure out what he's being charged for when, and the whys behind the tariffs. The whole package has to be simplified, or John Q. Public doesn't buy into the concept. That's why I see a flat tax at first, replaced shortly thereafter by a graduated tax based upon services purchased from the ISP.

I think that ISPs will provide bundled levels of service, and the consumer will pick a level appropriate for him/her. Cost of Service = $nn.nn and Tariff = $n.nn, where the tariff goes up as the Cost of Service goes up.

The real problem is going to occur when the Feds think that taxing the internet is their private domain, and the states decide that they too, want a piece of the pie. And then there's all the international slices of pie to consider as well.

That's why the flat tax (arbitrarily say $1 a month per ISP account) will succeed at first. Canada can tax their ISPs at a Canadian rate, France can do what France wants, and the USA can do what Bill Gates wants <g>. If you go to some sort of system whereby you're measuring each and every switch or gate that's accessed, and each and every packet, someone is going to have a huge advantage in revenues. Hint: Think USA (just for starters, more sites).

And one last problem to consider. Who's going to pay the tariffs for all those folks that "need" internet access, but can't afford it? I see another Gore tax to cover that situation.

KJC