[1636] in Commercialization & Privatization of the Internet
Secret NSF-Merit/ANS Agreements
daemon@ATHENA.MIT.EDU (William Schrader)
Sat Dec 7 22:24:43 1991
Date: Sat, 7 Dec 91 21:44:13 -0500
From: wls@psi.com (William Schrader)
To: com-priv@psi.com
To: The Internet community
>From: Bill Schrader
The two documents precisely reproduced after this message
represent NSF actions in altering significant policies of the
NSFNet Backbone contract with Merit, and the formation of and
rules underwhich ANS may operate. To my knowledge, this is the
first time they have seen the light of day.
I learned of the existence of these agreements inadvertently from
Mr. Weis while attempting to understand why ANS's "pool" model
seemed so firmly opposed to the CIX model of interconnection. I
attempted to obtain a copy for seven weeks from ANS and NSF, not
knowing who the actual sigatories were, but no one would provide
copies and stopped taking my calls. After threatening to file a
Freedom of Information Act request, Steve Wolff provided them to me.
Once we saw them, it was clear why they were so reluctant.
Take a few minutes and read them as closely, and as subtly, as they
were crafted. In the first, a 1-pg formal letter agreement, the NSF
approves ANS's formation, and provides it exclusive and direct access
to the NSFNet Backbone for commercial attachments, (before ANS CO&RE
was formally announced). This process was done without any apparent
public debate, or bidding process.
The second is an electronic mail message which may be the single
agreement which transferred the original NSFNet T1 to the "NSF
sponsored T3 connections to ANS's network". This subtle shift in
wording amounts to a significant shift is assets from a former
federal facility to a private network selling service to a federal
agency. This process was outlined by Stephen Wolff and Alan Weis
in public forums in the past and called, by them, "Privatization".
This email message below, concludes the official privatization of
the NSFNet in May 1991, but obviously relies on data in the Sept 90
letter agreement.
PSI is disclosing this information to the community so that you
may judge on your own if there was due public process, proper
control over federal funding appropriation and distribution, proper
assignment of rights pertaining to federal facilities, and
adequate safeguards built between awarding agency and contractor.
You should all consider the recent NSF postings of extended contracts
($15M for ANS) and the strong tactics used in the ANS/Merit posting
to sign their agreement or be disconnected from their traffic.
Bill Schrader
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First Agreement
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NATIONAL SCIENCE FOUNDATION
1800 G Street, NW
Washington, DC 20550
Division of Networking
and Communications
Research and Infrastructure September 10, 1990
Dr. Douglas E. Van Houweling
Merit Computer Network
5115 I.S.T. Building
2200 Bonisteel Blvd.
Ann Arbor, MI 48109-2099
Dear Doug:
This letter responds to yours of the 28th June, concerning Merit's plans to
establish a not-for-profit corporation with its partners.
NSF agrees to MERIT's assigning the existing joint studies with MCI and IBM to
the new corporation.
NSF agrees to MERIT's subcontracting services to the new corporation.
Although the new corporation may thus become the actual provider of the NSFNET
Backbone, NSF will continue to deal with MERIT under the terms of the existing
Cooperative Agreement.
The specific concurrence of NSF's Division of Grants and Contracts has been
obtained in the above two paragraphs.
NSF agrees that the new corporation may solicit and attach to the NSFNET
Backbone new users, including commercial users, and may connect them to new or
existing nodes on the Backbone, with the understandings that:
1) such users will reimburse the new corporation for at least the
full average cost of the connection, the added traffic, and
additional related support, and
2) the rembursements will be used to enhance the network
infrastructure and services, in order that the level of service
provided by MERIT under its Cooperative Agreement with the NSF not
be diminished.
NSF and MERIT will agree on the technical means of compliance with 2) above.
Sincerely,
(Original Signature)
Stephen S. Wolff
Division Director
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Second Agreement
======================================================================
Message: 8667397, Reply to: 8663885, 3 lines
Posted: 8:56pm EDT, Fri May 24/91
Subject: ANS commercial traffic
To: steve@cise.nsf.gov
>From: Eric M. Aupperle
Steve, this acknowledge's your note about commercial traffic on
NSF sponsored gateways to the T3 network. I've shared it with Al
Weis. Have a good weekend. Eric
------------------------
Message: 8663885, 22 lines
Posted: 12:32pm EDT, Fri May 24/91, imported: 12:35pm EDT, Fri May 24/91
Subject: ANS commercial traffic
To: Eric M. Aupperle, ema@merit.edu
Cc: jcavines@nsf.gov, steve@cise.cise.nsf.gov
>From: steve@cise.nsf.gov
This is to confirm our agreement on the flow of commercial
traffic across the NSF sponsored gateways to the T3 network.
NSF agrees that ANS may move commercial traffic in both directions across
the NSF sponsored Backbone gateways, providing that:
(1) ANS recovers at least the average cost of the commercial use that
traverses the NSF sponsored gateways.
(2) Excess revenues recovered above costs for this use after tax will be
placed in a pool to be distributed.
(3) An ANS resource allocation committee will be formed with representation
from the participating NSF sponsored gateway management, other network
organizations, the NSF and ANS to distribute those funds with the
objective of further building national and regional infrastructure, and
(4) MERIT and ANS ensures that the attachment and service sponsored by the
NSF under Merit's Cooperative Agreement with the NSF is not diminished.
NSF, MERIT and ANS will agree on the technical means of compliance with the
points outlined above.
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