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IP: Re+FCC Filing Re: Worldcom-MCI Merger (fwd)
From: Dave Farber <farber () cis upenn edu>
Date: Sun, 22 Mar 1998 19:41:48 -0500
From: Sky Dayton <sky () earthlink net> In defense of UUNet, they're not as vertically or horizontally integrated as some observers believe. In fact, UUNet's success is due in large part to their unwavering focus on one or two layers of the Internet access business. Unlike many of their early competitors, UUNet stayed out of the consumer ISP space and concentrated on wholesale and business connections only. PSINet, MCI and others tried unsuccessfully to build vertically integrated offerings in wholesale, business and consumer access, where they controlled everything from the physical layer pipe to the application layer experience at the consumer. This led to a dilution of focus, and their offerings suffered because of it. Although UUNet is integrated between the physical (MFS/Worldcom) and transport layers, it is only in one business, access. Unlike many of its early peers, UUNet did not integrate further. And it is certainly not horizontally integrated at all. I have to disagree with this letter's assumption that UUNet would consider getting into the hardware business.
From my viewpoint as a major consumer ISP (and UUNet's third largest
customer), I don't think the backbone control argument holds water either. Along with PSINet, Sprint, BBN and AGIS, UUNet is one of many private peering choices we have. If they chose to raise prices or lower service quality, we can move our business elsewhere, and UUNet will ultimately suffer. UUNet may be bigger after the MCI merger, but they are increasingly beholden to an fiercely competitive backbone market. Sky -- Sky Dayton, Founder & Chairman | Voice: 626-296-3072 EarthLink Network, Inc. | Fax: 626-296-4139 sky () earthlink net | 3100 New York Drive http://home.earthlink.net/~sky | Pasadena, CA 91107
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- IP: Re+FCC Filing Re: Worldcom-MCI Merger (fwd) Dave Farber (Mar 22)