[8855] in Commercialization & Privatization of the Internet
diamond mine and the full average cost of connection requirement
daemon@ATHENA.MIT.EDU (Gordon Cook)
Tue Dec 7 23:18:20 1993
From: cook@path.net (Gordon Cook)
Date: Wed, 8 Dec 1993 04:16:05 GMT
To: com-priv@psi.com
Would someone be kind enough to explain the meaning of full average cost of
connection as opposed to the marginal cost of connection of an ANS customer to
the backbone? Please explain by way of an example or two.
When Steve Wolff, in his letter to MERIT, gave control of the NSFnet backbone to
ANS on September 10, 1991 here is what the relevant portion of the letter said:
_____
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 reimbursements 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.
--------------
It is now 2 years and three months later. I have been told off record that NSF
has told Merit that they will get another extension, this time for one year. So
as the never ending cooperative agreement continues, I would like to know what
Steve Wolff and or his sub directorate in CISE has done or is doing to audit the
technical means of compliance with this, which I am sure by now they have had
sufficient time to agree on.
Of course the letter speaks of compliance only with 2) above and says nothing
about one. I would hope that MERIT and the NSF would be able to demonstrate
compliance with both 1) and 2) above. I would hope that the NSF has been
auditing ANS's pricing for complaince with full average cost. Could you
enlighten us please Steve?
People are telling me privately that they believe that ANS diamond mine pricing
does not operate in conformity with the full average cost of connection. Ironic
in that conformity with this is just about the only requirement that was
imposed.
If this should turn out to be the case ANS/Merit would appear to in violation of
the agreement of September 10, 1990. If it is in violation I am wondering how
it is possible that we will probably soon see another extension of the now more
than 6 year old 5 year cooperative agreement.
So again would some one explain by way of a hypothetical example how the full
average cost of a connection would be figured as opposed to the full marginal
cost? I would like this information in order to plug into assertions about
diamond mine that I am receiving from various people who have dealth with Joel
Maloff.
