Internet Pricing Vs. Reality.

Questions like how should service on the Internet be priced, should it be "free," as many computer enthusiasts seem to expect or is it too cheap to meter and what should the federal government's role be in promoting and supporting the Internet, needs attention. These questions can be answered by estimating the price for the packet-switched data network that comprises the backbone of the Internet. Not included in this analysis is the cost of the various computers, servers, and access providers connected to the packet network. The Internet is certainly not free. While the prices for such low bit-rate services as email might be so small they could be offered free to most users, the transfer of large files, such as full-motion video, would consume vast amounts of capacity on the packet network and thus would incur large costs - and prices. For the entire Internet to be "free," competitive market forces have to be excluded and subsidies have to be created, severely warping these market forces.