[41] in Information Retrieval

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More on competition

daemon@ATHENA.MIT.EDU (ganderso@Athena.MIT.EDU)
Mon Dec 23 12:46:12 1991

From: ganderso@Athena.MIT.EDU
To: libtalk@MIT.EDU
Cc: elibdev@MIT.EDU
Date: Mon, 23 Dec 91 12:44:23 EST

This has an article from the Houston Chronicle about the unfair
advantage debate.

Greg 
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From: James P Love <LOVE%PUCC.BITNET@mitvma.mit.edu>
Subject:      Re: NSF/ANS/IBM/MCI/Wolff/Kapor from N.Y. Times News Service
To: Eric Celeste <efc@Athena.MIT.EDU>, marilyn geller <mgeller@Athena.MIT.EDU>,
        Tom  Owens <owens@Athena.MIT.EDU>,
        Greg Anderson <GANDERSO@Athena.MIT.EDU>
In-Reply-To:  Message of Sun,
              22 Dec 1991 19:24:00 CST from <SCOTT@SKLIB.USASK.CA>

Here is a similiar article from the Houston Chronicle
- ------------------------------------------------------------
From: farber@central.cis.upenn.edu (David J. Farber)
Posted-Date: Sun, 22 Dec 91 06:55:43 EST
Message-Id: <9112221155.AA01726@pcpond.cis.upenn.edu>
Received: by NeXT Mailer (1.63)
To: com-priv@psi.com
Subject: From the Sunday Houston Chronicle by Joe Abernathy


Restrictions on computer net creates uproar

At stake is direction nation's Internet "highway'  will  take  At
stake is future direction of nation's Internet system. byline

By JOE ABERNATHY

A  high-stakes,  behind-the-scenes battle  is  being  waged  over
right-of-way on the nation's computer highways.

Luminaries from the computer science community are  protesting what
they  view  as  new  restrictions to  commercial  activity  on the
Internet, a research-oriented computer network that covers much of
the world.

They say the  outcome  of  the  debate  may  determine  whether
these crucial circuits develop as an equal-access public resource,
or as a tool tailored for the  Fortune  500.  Commercial  activity
related  to  the network and its underlying technology is expected
to  become  a  $1.2  billion  industry  in  1992,  according  to a
congressional  overseer.  The  Internet  now connects at least 12
million computer users, up from some 3 million only two years ago.

In its 20 years of existence,  it  has developed  into  a  network
linking many   of   the  nation's  universities,  military  sites,
government installations and  research  facilities.  It opened  to
commercial  uses last year with the creation of Advanced Network &
Services,  a  non-profit  entity intended  to  take  over  day-to-
daymanagement   of   the   Internet   from the   National  Science
Foundation. The Foundation, a federal government  agency,  created
and  developed the electronic backbone over which Internet traffic
moves.

ANS was formed by IBM, MCI Communications and Merit Inc. Merit is
a  Michigan  consortium that previously managed the network under
the supervision of the Foundation.


The current  uproar,  so  far  evident  mostly  in  the  form  of
electronic  letters  of  protest circulating on the Internet, was
sparked by the recent move to tighten restrictions on  commercial
activity.

The restrictions  would  require  that  anyone  doing  commercial
business on the Internet gain access to it through ANS.

Critics  charge  that  by  permitting   this   arrangement,   the
government  through  the  National Science Foundationgives unfair
competitive advantage to IBM and MCI, to the exclusion  of  other
enterprises that now provide access to the network.

""The situation  which  will  result  from  the  latest  mandates
creates  a  market  that  is fundamentally unfair in that it will
tilt the competitive playing field too strongly toward  one player
_ ANS,'' said computer science heavyweights Mitchell D. Kapor and
David J. Farber, writing last week in an electronic  open  letter
on  the Internet. The letter focused discontent that has simmered
for months.

""This advantage to ANS will have  been  accomplished  solely  by
virtue  of  the  exercise  of  intentional  or  unintentional NSF
policy. No provider should be given such an advantage without
public and open discussion and competition.''

Kapor, the founder of software giant Lotus Technology, has become
a  leading  activist  in exploring legal and social issues on the
electronic frontier, including Internet. Farber, a University  of
Pennsylvania scientist, is one of the intellectual parents of the
network and has lately conducted a  wide-ranging  survey  of  the
worldwide   economic   market   for   high-performance   computer
networking.

Besides  providing  Internet  access,  possible  commercial  uses
include    for-profit    information   libraries   and   software
distribution.

""The evolution of a strong networking infrastructureis essential
to  the health of research and develpment in this nation,'' Kapor
and  Farber  wrote.  ""Competition  has shown  itself  to  be   an
effective vehicle for creating the best for the consumers as well
as providing jobs and trade. We believe that no further progress in
networking   infrastructure  is  possible  without  ensuring  the
creation of a level, competitive playing field.''

 In an interview with the Chronicle, Farber  suggested  that  the
Internet   can  best  evolve  as  a  market  free  of  government
restraints. ""Then let the best company win, and  there  will  be
many winning,'' he predicted. ""My strong feeling is that this is
going to be a field that is going to be  very,  very  large.  I'd
like to see this country get strong, and the way we get strong is
diversity.''

The National Science Foundation quietly gave  ANS  the  exclusive
rights  to carry commercial traffic over the electronic backbone,
in a letter from Stephen Wolff, who over sees  the  Internet  for
NSF.

Wolff told the Chronicle late Friday that he hopes to reach  some
kind  of  accommodation  with  users  who  have protested the new
policies.

""I've been working toward a consistent set  of  policies  and  a
consistent  set  of  goals  for  five years,'' he said. ""We know
where we want to be. We want to get out of the business. As  soon
as  the  government stops funding the suppliers of networking and
begins funding the users of  net  working,  it's  the  users  who
become responsible for appropriate use.''

He said it would take a change in government policy, possibly  in
the  form  of  an  executive  order  or congressional action, to
loosen commercial access in the manner preferred by Kapor, Farber
and other critics.

On Dec. 9, President Bush signed the  High-Performance  Computing
Act of 1991, a five-year, $5 billion blueprint that will turn the
Internet into a broadly available National Research and Education
Network  (NREN,  pronounced  en-ren). The NREN is held forth as a
tool  that  will  revolutionize  communications,  education   and
business.

 Senate sponsor Al Gore,  D-Tenn.,  spoke  for  the  plan's  many
proponents  in  describing  it as a key vehicle for international
competitiveness in the 1990s.

 At the signing ceremony, Bush touted the new network as part  of
a strategy to enhance U.S. competitiveness.

 ""Private industry will work closeqly with federal agencies  and
labs  in  the planning, funding and management of this initiative
to ensure that the  fruits  of  this  research  program  will  be
brought  into the educational and commercial marketplaces just as
soon as possible,'' he said.

 But critics, engaging in a lively online discussion prompted  by
the Kapor-Faber message, argue that the favorable status afforded
the ANS partners by the National Science Foundation  is  stifling
healthy competition on the network itself.

""The NSF effectively pumps vast sums of money into one provider,
and  changes the rules of the game midplay, setting that provider
up  to  compete  unfairly  with  existing  en terprise,  thereby
disrupting  a  burgeoning  industry,''  wrote William Schrader of
Performance  Systems  International,  a  fledgling  provider   of
Internet  access,  which  is in direct competition with ANS. ""In
legal jargon, this is called restraint of trade.''

The Internet is actually a  ""net  work  of  computer  networks''
embracing  some 3,000 individual networks, each of which may have
from one to tens of thousands of users.

 The National Science  Foundation  has  gained  wide  praise  for
creating  the initial environment that brought about the network.
By funding a high-speed, high-capacity nation wide backbone,  the
foundation was able to encourage industry and education to invest
several dollars for each dollar spent by the government, in order
to hook up to the backbone.

 The Foundation's national back bone in effect does the network's
heavy  lifting, speeding millions of messages from coast to coast
and around the world each day.

This backbone originally was funded  by  the  federal  government
explicitly to serve the research and education communities.

ANS was created in 1990 to assume  management  of  the  backbone,
injecting   professional   management  skills  into  the  rapidly
expanding Internet, which users have characterized as  ""anarchic
democracy.''

This year ANS announced a for- profit subsidiary called ANS CO+RE
(Commercial  +  Research), with exclusive commercial connectivity
to the backbone. The Science Founda tion has agreed to  spend  $6
million  in  1991  and  $10  million  in  fiscal  1992 to improve
capacity.

Allan H. Weis, chief executive  officer  of  ANS,  could  not  be
reached  for  an  interview,  but  did address the controversy in
messages on the net work.

He said the ANS connectivity agreement with commercial users only
requires  them  to  accept  traffic from ANS CO+RE customers, but
does  not  prohibit  them  from  connecting  directly  to   other
networks.

Left unsaid, critics say, is  that  such  connections  cannot  go
through the Internet without ANS involvement.

The fundamental problem arises when the myriad of  companies  and
individuals hooked up to the backbone attempt to carry out their
business,  which  is  often  difficult  to  identify  as   purely
commercial, or purely research and education oriented.

""Our industry is young,'' Weis wrote, ""and  we  are  all  still
struggling  to  determine the best way to ensure fair settlements
and quality service to the networking community.''


z com-priv psi 12/22/91
'David J. Farber     com-priv@psi.com    12/22/91 From the Sunday Houston Chroni

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