New technologies often start out expensive, then experience dramatic declines in unit costs as growth occurs. In 1896 in New York City, the price of telephone service was $20 per month, but an average worker’s monthly income was only $38.50!

In Russia today a Glasnet account costs about $25 per month - for e-mail and Internet connectivity - but an ave-rage Russian’s salary is only about $100 per month. Still, Glasnet and other service providers continue to grow, and the relative price of connec-tivity can be expected to fall over time.

[Data on NYC in 1896 from Chris Kedzie’s paper, "From Here to There: Using the New Media to Gain the New World," delivered in Moscow, July 30, 1994.]

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