Sky Speaks... Re: protests MCI/WorldCom is anticompetitive

Rohit Khare (
Sun, 22 Mar 1998 17:53:25 -0800

Just FYA (Amusement). Sky is actually correct on this one, though.

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From: Sky Dayton <>

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

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.

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 Dayton, Founder & Chairman | Voice: 626-296-3072
EarthLink Network, Inc. | Fax: 626-296-4139 | 3100 New York Drive | Pasadena, CA 91107

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