From page 33 than that. They think of it in terms of about the same amount they pay on their cable bill.” ‘So how should pricing for high- bandwidth services be structured? The University of California at Berkeley is conducting the Internet Demand Experiment study to answer that question. Since March, 60 test subjects have been using ISDN lines that run as fast as 128 Kbps for Internet ac- cess. Every Sunday, the pricing ‘structure changes to charge per minute, per byte, or by some other measure. “We've found that people are very price-sensitive,” said Hal Vaer dean of the School of Information Management and ‘Systems, who is leading the exper- iment. “Users will cut down their demand for bandwidth if it's in their economic best interests to do 80.” Eventually, service providers are likely to settle on some kind of us- age-based model and move away from: plans, Varian said. But he said ISPs will also have to offer pricing options that will en- able consumers to buy more band- width on demand—much as cable companies do today by offering ba-