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Global Publishers

Electronic publishers can become international without having to develop overseas bases. It is trivial to transport information cheaply and distance does not matter; geography is irrelevant in the information economy and only language and culture differences still separate nations.

At this point governments will start worrying about taxation, export controls, and tariffs--but these are irrelevant since unenforceable. The state can no longer control its population by controlling access. Cutting off international calls would have drastic economic and social consequences. Even if the state were to disallow international calls there would still be satellites and radio. We are already irrevocably committed to the information economy.

Publishers can reduce the risk of ten thousand simultaneous requests by increasing the distribution sites and by charging different amounts to service requests at different times of day (local time), thereby evening out calls per hour. Further, each distribution site is merely a phone line and a small special-purpose computer--at most a few thousand dollars of equipment--which easily pays for itself if it supports a few dozen more subscribers.

The technology supporting the system would already have been deployed and paid for in the previous 5-year span, so the only cost will be the ongoing one of service expansion, service upgrading, and product distribution. Distribution should cost almost nothing since subscribers pay phone connect cost. Billing can be automatic just as electricity, phone, gas, cable, newspaper, and magazine subscriptions are now.


next up previous contents
Next: Competition Up: Pricing, Positioning, and Profits Previous: Lures to Subscribe
Gregory J. E. Rawlins
7/25/1998