[ih] History of the Economics of the Internet?

[Steve Crocker]

The Arpanet leased lines and IMPs and the BBN network management were all paid via directly from (D)ARPA.  Each site paid for its own hardware interface to its IMP and was responsible for any software changes it needed.  There were no monthly charges or usage charges.

Steve Crocker
Former D(ARPA) program manager
1971-74

Sent from my iPhone

> On Jul 30, 2026, at 6:58 PM, Miles Fidelman via Internet-history <internet-history at elists.isoc.org> wrote:
> 
> I seem to recall that institutions paid for their connection to the ARPANET - using funds that would otherwise pay for leased lines and other telecom costs.  Paid out of ARPA grants.  Money ARPA was paying anyway, with the ARPANET as a way to cut the costs.  Kind of like how the post office jump started the airlines & aerospace industry by paying for airmail.  Or the railroads by paying for mail transport.
> 
> 
> 
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> ________________________________
> From: Internet-history <internet-history-bounces at elists.isoc.org> on behalf of Scott O. Bradner via Internet-history <internet-history at elists.isoc.org>
> Sent: Thursday, 30 July 2026 18:17:25
> To: John Levine <johnl at iecc.com>
> Cc: internet-history at elists.isoc.org <internet-history at elists.isoc.org>
> Subject: Re: [ih] History of the Economics of the Internet?
> 
> it also touches on what the legacy telcos expect as to settlements etc
> 
> 
>> On Jul 30, 2026, at 4:48 PM, John Levine <johnl at iecc.com> wrote:
>> 
>> It appears that Scott Bradner via Internet-history <sob at sobco.com> said:
>>> this covers some of the current discussions over the Internet's economic model
>>> within the regulatory world (at least in the US)
>>> 
>>> https://isoclive.substack.com/p/fcc-ip-transition
>> 
>> Not really. It's about moving the telephone system from legacy SS7 to IP
>> signalling, switching, and transport. It's the same technology as the Internet
>> but it's separate dedicated IP networks with privately negotiated
>> interconnections and occasionally still per-minute settlements.
>> 
>> There is also telephony that runs "over the top" of the public Internet, but
>> that's something else. That's VoIP, Voice over IP, while the former is VuIP,
>> Voice using IP. There are plenty of vendors that provide VoIP to VuIP gateways
>> so your VoIP terminals can make and receive calls to or from real phone numbers.
>> 
>> R's,
>> John
> 
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