[695] in Commercialization & Privatization of the Internet

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Let 100 Backbones Bloom!

daemon@ATHENA.MIT.EDU (tmn!cook@uunet.uu.net)
Wed May 15 23:39:48 1991

From: tmn!cook@uunet.uu.net
To: com-priv@psi.com
Date: Wed May 15 23:34:00 1991


<<MESSAGE from>> Gordon Cook                          15-MAY-91 23:34
                 cook@tmn
 Phone call to someone involved with NREN policy today lead to interesting 
 discussion.  Anyone willing to critique the following scenario?
 
 1.  NSFnet backbone not rebid.  Al Weis and ANS introduce privatized 
 ANSnet effective November 1992. NSF no longer pays the backbone provider 
 for the costs of mid-levels connection to the backbone.
 
 2.  BUT NSF is NOT out of the business of monetarily supporting the NSFnet 
 now known as the interim interagency NREN.  Their projected budget for 
 this task in FY92 is 32 million dollars -  up from 13.5 million in FY 89.
 
 3.  NSF support now takes the form of paying the mid-level connect fees to 
 any backbone that a mid-level wishes to connect to.  This could mean 
 ANSnet's soon-to-be 622 megabit superhighway backbone, or PSI's backbone, 
 or Uunet's backbone, or AT&T's (if some mid-levels could convince the 
 company to establish one) or a backbone made up of interconnected 
 mid-levels.
 
 4.  You know - let backbone providers differentiate among themselves. 
 Mid-levels with universities clamoring to use the ANS 622 megabit 
 racetrack would presumably be willing to pay a higher connect fee.  
 (Should the NSF say we will pay only a flate minimum and if you want the 
 high speed stuff you gotta pay the difference?)  The other lower speed 
 backbones could presumably try to define their own market niches to 
 attract customers. This would be a free market - fair to all players game, 
 right?
 
 5.  And now we get to the good part: interoperability.  To become an NSF 
 approved backbone provider, one must pledge contractually to maintain open 
 gateways with all other approved backbone providers. Pull the plug on a 
 gateway and loss your approved backbone provider eligibility and the money 
 that comes with it. Voila!  An economic incentive to everyone not to try 
 to punish anyone by fragmenting network connectivity!
 
 Question - under these conditions, since all the backbones are now 
 privatized, have we buried the old bugaboo of acceptable (non-commercial) 
 use policies?
 
 Gordon Cook **Office of Technology Assessment**
 
 PS:  Under such conditions, would the network really be privatized? Has 
 anyone really DEFINED privatization yet?


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