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Industry committee  As we said in our Internet management decision, if you have problems in contention, firstly, expand. If that doesn't work, then use economic incentives. One of the economic incentives is that the more you use, the more you're going to have to pay.

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  We hold hearings and people produce and give us the evidence. We have the evidence in terms of the increase per year, per usage, per user. We have the total Internet traffic, and the various companies come before us and point out what they have to do and how close they are to the

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  That's one of the big issues. When this whole issue first came up, it was nothing to do with usage-based business, but Bell in effect wanted to restrict people who were point-to-point users, etc. They said that otherwise those people would slow down the whole Internet and people

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  Yes, but there's one key thing: as long as it's non-discriminatory. If you use technology, you cannot choose who comes first and who comes second, etc. You have to do it across the board.

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  If you can tell me how to do it, I'd gladly do it. We always do it on the best available data. By definition, the data is old by the time I give it to you. We try to be prospective. We try to look forward. We try to spot trends, to anticipate, and to take that in, etc., but it i

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  As always, we want to know what the effect is on consumers. Is it going to be reasonable? As I mentioned, we want to make sure that heavy users pay for the heavy use and that it's not the innocent average user who has to suddenly pay more, etc. That's one way to protect consumers

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  There are two things. First of all, my colleague, Mr. Katz, was here when the 2006 decision was made. Do we have a more competitive market now than then? Len, why don't you answer that question.

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  I will answer your first question. You say that this is a disciplining and a choking off. It isn't. It is making people pay for what they use, thereby allowing the ISPs to have a greater income and invest it and produce more capacity. It's a simple principle of economics--

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  You're making all sorts of assumptions to say the logic is that there's not increased capacity. If the ISP makes more income because of usage-based billing, how will it use that income? It's going to use that income to create more capacity. That's the whole idea.

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  The business market does not have caps. It is on a one-to-one basis with each business. They negotiate how much a business would need and negotiate the price for it. For consumers you don't do it on a one-to-one basis. Basically there are different menus and you ask them to choos

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  Let's start off with the basic principles. We are under direction from the government not to regulate unless there is a market failure. Mr. Masse wants me to regulate the business market. There is no market failure. No businesses have said, “Come in and regulate”, etc., so theref

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  If you want to look at research, as I mentioned before, this is not an art. We get various submissions showing various numbers, etc., and you have to strike a balance on it. Did we strike the right balance or not? It is one of the reasons we're going to have a review and vary.

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  Of course we do. They have done research, etc., but that doesn't necessarily mean that people agree with us. As I say, there is always an error factor, because all of this, when you start something new, is based on a lot of assumptions. You have to make assumptions in order to ma

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  We have had three hearings on this. We have looked at it three times. We have looked at hundreds of documents. This is not something we do lightly and then let the chips fall where they may. We do it very carefully after lots of internal discussion. As I pointed out, one of my co

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein

Industry committee  You know, Mr. Lake, I make the decisions on the basis of a huge number of presentations. That's one thing. You are now zooming in on one little thing, and you're asking me here to resuscitate something right off the top of my head and give it to you six months after the fact, or

February 3rd, 2011Committee meeting

Konrad W. von Finckenstein