[1870] in Commercialization & Privatization of the Internet

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Al Weis' Responses to My Questions about the ANS Agreements

daemon@ATHENA.MIT.EDU (Gordon Cook)
Sat Jan 4 00:17:18 1992

To: com-priv@psi.com
Date: 3 Jan 92 23:53:51 EST (Fri)
From: cook@tmn.com (Gordon Cook)


<<MESSAGE from>> Gordon Cook                          03-JAN-92 23:53
                 cook@tmn
  SUBJECT: Re: ANS Connectivity Agreement
  MESSAGE from =uunet!ans.net!weis                  30-DEC-91 20:42
  >  Yes, Gordon, we still have the Gateway and Cooperative Agreements.  
 The Connectivity Agreement states that a network is willing to accept 
 commercial traffic and let it flow across its network - - and these 
 networks are eligible for funds from the infrastructure pool.
  >
  >  A Gateway Agreement says that a network will host both commercial and 
 research/education institutions.  A Cooperative Agreement states that, 
 while a network is willing to carry commercial traffic, it doesn't want to 
 sell the commercial services.  Instead, it contracts with ANS CO+RE to 
 sell these services, and it provides the connection between the ANS 
 network and its customers.  Gateway and Enterprise Agreements fund the 
 infrastructure pool.
  >
  >  I will be forwarding to you the Hitchhiker's Guide to the ANS 
 Agreements, which was distributed and discussed at the fall FARnet 
 meeting, for your reference. If you still have questions, give me a call.
  >
  >  Al
  >
  > ---
  >
  > <<REPLY   from>> Gordon Cook                          17-DEC-91 12:56
  >                  cook@tmn
  >   Thank you Al.  I appreciate your taking the time to respond.  I hope 
 the Hitchhikers Guide will make more clear the evolving relationship 
 between ANS and the mid-levels who are noticably silent on com-priv.  I 
 have the impression that for the remaining roughly 24 months of the 
 extended Merit agreement mid-levels which do NOT sign connectivity 
 agreements with ANS will remain connected to the backbone at no additional 
 cost to themselves but will be blocked from receiving ANS commercial 
 traffic.  A point that is VERY important but rather less clear is whether 
 clients of the mid-levels which a "com" as their network address will be 
 able to send traffic which they state is in conformity with acceptable use 
 requiremenst accross the backbone. Does the hitchikers guide make this 
 clear?
  >
  >
 
  Gordon,
    Let me try to respond to several simple questions in your notes from 
 December 17th:
  <> You understood *correctly* that "for the remaining ... months of the 
 extended MERIT agreement, mid-levels which do NOT sign connectivity 
 agreements with ANS will remain connected to the backbone at no additional 
 cost to themselves but will be blocked from receiving ANS commercial 
 traffic."  One quibble is that it is possible that the mid-level and ANS 
 could agree on a variant of the connectivity agreement, but you've 
 captured an important point correctly.
  <> You ask whether clients of the mid-levels which [have a] ".com" as 
 their network address will be able to send traffic which they state is in 
 conformity with acceptable use requirements across the backbone. The 
 answer is "yes" and "of course".  The NSF AUP allows research/education 
 traffic to use the backbone without regard for whether the organization 
 sending/receiving the traffic is a university, kindergarten, government 
 research lab, corporate research lab, or consulting shop.  Thus, whether 
 the suffix of the network's domain name is ".edu" or ".com" does not 
 matter.
  <> In your second note, you ask about the difference between a Gateway 
 attachment and an Enterprise attachment.  A Gateway attachment is one in 
 which we provide a connection between ANSnet and another network, 
 typically a mid-level.  An Enterprise attachment is one in which we 
 provide a direct connection between ANSnet and a specific site, typically 
 a university or an industrial site.  A Gateway can advertise to us network 
 numbers of its customers at many sites. An Enterprise can only advertise 
 to us its internal network numbers. The engineering of the two kinds of 
 attachments is essentially the same.
 
  If you still have questions, feel free to give me a call.
 
  Al (659)  ------------------------------------------------
  SUBJECT: Who Pays Whom How Much? A Murky Picture.]]
  MESSAGE from =uunet!ans.net!weis                  30-DEC-91 20:42
 
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  To: com-priv@psi.com
  Subject: Who Pays Whom How Much?  A Murky Picture.
  Date: 26 Dec 91 23:22:49 EST (Thu)
  Message-Id: <9112262322.AA22711@tmn.com>
  From: cook@tmn.com (Gordon Cook)
 
 
  <<MESSAGE from>> Gordon Cook                          26-DEC-91 23:22
                   cook@tmn
   Again what is unanswered in the Communications Week Dec 23rd article is 
 when the mid-level gets to sign the gateway or cooperative agreement.  The 
 claim is made that all they are asked to sign is a coonectivity agreement 
 which apparently places them under no obligation except to receive 
 commercial traffic from ANS' customers. It even gives them something for 
 nothing -- participation in the infrastructure pool.  I am having 
 difficulty believing that mid-levels can sign the connectivity agreement 
 (excuse typo above) and NEVER be asked to choose between the gateway or 
 cooperative agreements also outlined by ANS in its September documents.  I 
 have asked privately about this and have so far received no clarification.
 
   We read that a regional network that wants to send commercial traffic to 
 other regional networks over the ANS network has to pay ANS a fee.  This 
 sounds to me like the gateway agreement.  If I read that correctly such 
 agreements could be quite costly to the mid-levels. However I have yet to 
 see an example of exactly how much signing such an agreement would cost a 
 given mid-level.
 
   The NSF has had to pay a more than 3 fold increase to ANS for the T- 3 
 backbone.  It now appears that the mid-levels - if they are to keep their 
 commercial customers - are to also pay ANS for access to the backbone.Some 
 people have told me that they doubt` that the mid- levels that give up 
 their commercial customers can survive.
 
   Can anyone offer some enlightenment on the conomics of all this?
 
  --------------------------
 
 
  Gordon,
    You raise some interesting issues, several of which are very importan 
 to us at ANS.  Let me try to answer the questions that ask for 
 clarificatio of ANS policies, and offer our hopes and intentions for the 
 questions that speculate about "the economics of all this"?
 
  <> You first ask about whether a mid-level can "sign the connectivity
  agreement and NEVER be asked to choose between the gateway or cooperative 
 agreements".  The answer (simple in this case) is: yes, a mid-level can 
 certainly sign the connectivity agreement and never sign either the 
 gateway or cooperative agreement.
 
  <> You state correctly that "a regional network that wants to send
  commercial traffic to other regional networks over the ANS network to pay 
 ANS a fee".  Then you speculate that "such agreements could be
  quite costly to the mid-levels".  Our intention is that the Gateway or 
 Cooperative agreement would be quite moderate in cost to the regional. 
 Assuming for a moment that we are talking about a regional with an 
 existing NSF-sponsored R&E service attachment and a situation in which the 
 regional's commercial traffic would initially be a small percentage of its 
 total traffic, we think that these costs would be quite modest. And, as 
 the regional's commercial traffic increases, we think these costs would 
 continue to be a small fraction of the regional's resources.
 
  <> You mention that T3 costs NSF more than T1, then suggest that this
  increased cost is being shifted to the regionals, then close with saying
  that the regionals may not be able to 'survive' if they can't keep their
  commercial customers.  This combines three questions into one in a
  way that makes a simple reply awkward.  But let's try.
   First, T3 does cost more than T1.  That's not a surprise, and it's our 
 hunch that the regionals that are now about self-sufficient at the T1 
 level now would like to be self-sufficient at the T3 level in the not- 
 too- distant future.  We think that support for mixed traffic across the 
 T3 network will serve the regionals well in this respect.
       Second, you suggest that the regionals are being asked to pay for 
 this increased cost.  It is important to stress that neither the Gateway 
 agreement nor the Cooperative agreement are needed for the continued use 
 by the regional of its NSF-sponsored service attachment for R&E use, i.e., 
 for use in accordance with the NSF AUP.  The only regionals being asked to 
 help pay for T3 are the regionals that choose to use their T3 attachment 
 for their commercial (i.e., non-NSF-AUP) traffic.  These regionals have at 
 least three other alternatives: (a) they could get a separate T1 ANS CO+RE 
 attachment for their commercial traffic, (b) they could get a commercial 
 gateway attachment from someone else, or (c) they could decide to 'do 
 without' supporting commercial service.  ANS doesn't take away 
 possibilities, but we try to create them.
       Third, you speculate that regionals may not be able to 'survive' if 
 they have to 'give up their commercial customers'.  The objective fact is 
 that the regionals (and their members) benefit from economies of scale.  
 And being able to support commercial traffic can only help in achieving 
 these economies of scale.  For these reasons, we are trying to create 
 possibilities to make support by the regionals of their commercial 
 customers viable.
       Our intent and hope in all this is to help the regionals move in the
     direction of self-sufficiency at the T3 level using mixed traffic as a
     means for the regionals to achieve the economies of scale needed.
 
  If you still have questions, feel free to give me a call.
 
 
  Al
 
 
 _____ Note from Gordon Jan 3:  I responded to Al saying that I thought it 
 would be helpful to take this public and test his hope that the mid-levels 
 who had reached t-1 self sufficiency were now interested in attaining T-3 
 self sufficiency.  I observed that perhaps those mid-levels who agreed ... 
 or disagreed would say so on com-priv.


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