[1150] in Commercialization & Privatization of the Internet

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Wanted: a Primer on Settlements!

daemon@ATHENA.MIT.EDU (tmn!cook@uunet.uu.net)
Sat Aug 10 14:26:21 1991

From: tmn!cook@uunet.uu.net
To: com-priv@psi.com
Date: Sat Aug 10 14:17:52 1991


<<MESSAGE from>> Gordon Cook                          10-AUG-91 14:17
                 cook@tmn
 How many on this list really understand the "settlements" debate?  i am 
 not sure at all that I do.
 
 Here's what I think I understand.  Would someone from the CIX or from ANS 
 correct me when I error?
 
 Settlements involve the measurement of the data that customers (all or 
 just commercial?) pass across the ANS backbone and into the mid-levels and 
 vice-versa.  On some regular basis the total traffic generated from ANS 
 customers and the total traffic from the mid-levels is measured.  If the 
 mid-levels customers are putting more data across the backbone than ANS 
 customers are send via the backbone on the way to the mid-levels, then the 
 mid-levels must pay ANS for the difference?  On the same account if the 
 balance were than ANS customers were using the backbone to shove more data 
 into the mid-levels than was going in the reverse direction, then ANS 
 would owe the mid-levels some sort of settlement charge based on a per 
 packet basis??
 
 Settlements are something that NETWORKS pay to each other? They do not 
 directly affect institutions?  However if they do represent a new level of 
 network cost, they would presumably be eventually passed on to 
 institutions in the form of higher annual connect fees???
 
 Settlements do not reflect a policy of beginning to chrage for network use 
 by the amount of data sent?  Or do they??


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