[2643] in Commercialization & Privatization of the Internet

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An Editorial from Issue one of the COOK Report

daemon@ATHENA.MIT.EDU (Gordon Cook)
Wed Apr 1 15:11:33 1992

To: com-priv@psi.com
Date: 30 Mar 92 23:45:27 EST (Mon)
From: cook@tmn.com (Gordon Cook)


<<MESSAGE from>> Gordon Cook                          30-MAR-92 23:45
                 cook@tmn
 
 In the morning I am taking the first 12 page issue of the COOK Report on 
 Internet - NREN to the printer.  Thursday I leave for nearly 2 weeks in 
 Russia.  I'll be offline til April 16th.
 
 I will distribute copies of issue on on the Hearings starting now to those 
 who send private mail requesting it and assure me that they will not 
 republish it on other lists.  This is the only issue for which I will do 
 this.
 
 In the meantime here is a six kilobyte editorial from Issue One.
 
 I think it contains the seeds of a solution to the current mess.  I'd like 
 to know what the readers of Com-Priv think.
 
 ______________________ An Editorial
 
 Is the NSFnet Precompetitive or Commercial Technology?
 
 A Win-win Solution
 
 The Hearings showed the sharp contrast in the NREN policy debate. Mitch 
 Kapor and Bill Schrader were adamant that the network represented a 
 commercial technology no longer in need of government funding to develop 
 further.  Mike Roberts, who testified for Educom, and Doug van Houweling, 
 who appeared on behalf of MERIT, were just as adamant in their belief that 
 the network should be viewed as precompetitive technology and a platform 
 for development of the high bandwidth new tools of multi media electronic 
 mail and databases that have been spotlighted as among the goals of the 
 NREN vision. In such a set of circumstances government funding for the 
 backbone would be expected as a matter of technology development and the 
 goal of economic competitiveness.
 
 In the opposing view of Schrader and Kapor, the maturity of current 
 network technology is such that it should be brought, by commercial 
 providers, to large numbers of users as an enabling technology or a tool 
 to be used for improved research and education.  The result is a win-lose 
 debate. On the one hand we have a new technology for a small elite now and 
 new markets later.  While, on the other hand, we also possess a 
 commercially mature technology used by several million Americans for 
 improving their daily tasks of research and education. Both uses are valid 
 ones - yet the fact that they were presented as being in such stark 
 conflict at the hearings reveals the abysmal state of planning for the 
 implementation of an NREN.
 
 Like it or not, the NSFnet has been commercialized and T-1, if not T-3 IP 
 internetworking, is not a precompetitive product.  However those who want 
 the federal money to develop a fancier higher tech "bleeding edge" NREN, 
 say that, if they allow the NSFnet backbone to be treated as a commercial 
 production entity, they will be left without a platform to move the 
 technology forward.  The central question seems to be that there is only 
 one backbone that reaches all 32 midlevel networks and that this backbone 
 is desired by different parties to be both experimental and of production 
 commercial quality.  An impossible sounding task.
 
 The debate between Roberts and van Houweling, on the one hand, and 
 Schrader and Kapor on the other helped to clarify what the NSF must do in 
 its solicitation.  Choosing two different providers for the same kind of 
 backbone it now has makes no sense.  Rather it must choose to support two 
 very different backbones.
 
 Schrader and Kapor are correct to assert that, as long as the backbone is 
 a free good for the mid-levels and their 1200 connected institutions, the 
 Federal use of taxpayer dollars is holding back the further development of 
 a commercial industry where companies like Uunet and PSI can offer 
 production quality commercial networks.  To have one partnership 
 prepositioned for exclusive commercial use of the production backbone 
 because it engaged in "generous" cost sharing with the NSF in agreeing to 
 install marginally functional T-3 technology is unacceptable.
 
 It is time for the NSF to acknowledge reality and embark on the 18 to 24 
 month time line mentioned by Eric Hood on behalf of FARnet so that the 
 mid-levels may choose some combination of either interconnecting with each 
 other or selecting commercial backbone services.  Someone must be clear 
 and state that a subsidized backbone ends on January 1, 1994.  The NSF 
 must focus a major share of its time meeting with FARnet and others to 
 accomplish a coordinated change.  Commercial, production backbones with 
 subsidies to regionals for interconnection should emerge as one kind of 
 awardee in the recompetition.
 
 However, the other awardee should be a precompetitive research backbone 
 connecting the major sites involved in the current gigabit testbeds.  
 Major research universities not in the testbeds could apply to the NSF for 
 grants for direct connection.  Don't put the entire network on the 
 bleeding edge.  Let universities and corporations compete for that honor.  
 If this backbone can not be brought online before 1995, it would not be a 
 huge loss.  (Indeed just what could be brought online by 1995 seems a bit 
 uncertain.)  However if the gigabit testbeds perished during a never 
 ending fight between ANS, the mid- levels, and the commercial providers we 
 would be wasting an important resource.
 
 Congress should instruct the NSF to develop a plan and a budget to work 
 with CNRI to maintain the testbed momentum and turn it into a small scale 
 national research backbone by 1995.  There is where any federal money 
 spent for backbones and new technology development should be focused. The 
 current situation is win loose.  Either a commercial network or a 
 "precompetitive" R&D network is imposed on the entire community. 
 Supporters of each side spend most of their time struggling to see that 
 their views predominate.
 
 It is time to stop the warfare and go for a win-win solution.  If the NSF 
 really wants to go for a leadership role in developing the most broadly 
 defined vision of the NREN possible, it will see the merits of following 
 both these directions.  If it takes more money than would be required by 
 continuing the special relationship with ANS, so be it.  Let the NSF put 
 ANS on notice:  a mistake was made.  It will not be continued after 
 January 1, 1994.
 
 When private industry offers the government a special "money saving" deal, 
 if it is given in return a unique benefit, no one is well served.  If
 
 ANS cannot compete in the market place by 1994, it can certainly not 
 complain that it did not have a special opportunity that PSI and Uunet did 
 not have. However the NSF must also make it very clear that it no longer 
 sanctions attempts by ANS to acquire commercial customers and charge any 
 mid-level "com-bits" as a result.  If ANS is to be paid for provision of 
 backbone service until 1994, it must accept a quid pro- quo: an immediate 
 end to its special status.
 
 NREN does have two policy drivers.  It is time to implement a separate 
 plan for supporting each rather than a single plan that leaves no one 
 satisfied.
 


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