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.cb COMMENTS ON NOLL'S PAPER

	I agree with Noll's argument that government regulation of
computing will tend to create cartels and prematurely
rigidify the structure of the information industry.

	Namely, it cannot now be known what combinations of home
computers, time-sharing, specialized communication, telephonic
communication, private networks, public data bases, private data
bases in public computers, and private data bases in private
computers will work out best for the users of intormation
services.  This is because it isn't
known what services individuals, businesses and other institutions
will want and what they will be willing to pay.  Any attempt at
regulation in the near future is likely to split off the service
to be regulated and require it to be separately priced.  Let me
give two examples:

	1. The %2New York Times%1 proposed that electronic mail
be a function of the Postal Service.  One may imagine that the
Postal Service would be glad to have it as an extension of its
first class mail monopoly and not otherwise.  However, a hobbyist's
home computer is capable of sending electronic mail to any other
home computer over the telephone network once
suitable protocols have been adopted.  Moreover, the business
use of electronic mail will be inextricably intertwined with
other inter-business communications.  For example, we envisage
Company A's inventory control computer initiating a dialog
with Company B's computer leading to an order for ten thousand
pencils if the price is mutually agreeable.  Such a dialog
may involve five interchanges of messages per second for a few
seconds.  I would bet that the service initially offered by the
Postal Service wouldn't to this economically, because they
wouldn't think of it at first, and it wouldn't be important at
first.  On the other hand, an attempt to write a law extending
the Postal Service's mail monopoly to electronic mail would
undoubtedly cover such communication unless someone thought
to exclude it.

	2. The present laws concerning credit data bases
will give troubles in interpretation as soon as people start
using computer files to store mail - as many users of ARPAnet
already do.  When is a remark in a letter that someone didn't
pay his bill to be regarded as adverse credit information
that must be found and produced when the individual asks for
his credit records.  Most likely, the people to whom the request
is directed won't even know of the remark in someone else's
correspondence file.