[8912] in Commercialization & Privatization of the Internet

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How Will NSF Get Out of NSFnet Business? 3 Possible Scenarios.

daemon@ATHENA.MIT.EDU (Gordon Cook)
Sat Dec 11 21:03:58 1993

From: cook@path.net (Gordon Cook)
Date: Sat, 11 Dec 1993 18:03:14 PST
To: com-priv@psi.com

Tony Rutkowski says (according to Tim Salo on com-priv):

"However, the amount of costs the NSF now picks up is a minor 
part of the Internet, essentially irrelevant compared to other 
factors, and disappearing in a few months as NSFNet goes away 
and the U.S. backbone traffic shifts to the existing commercial 
internet backbone providers."
   
And then Philip Elmer Dewitt writes in TIME magazine:

"The change has already begun. NSF's contribution now 
represents about 10% of the total cost of the network, and the 
agency is scheduled to start phasing out its support next April, 
removing at the same time what few restrictions still remain 
against commercial activity."

Suddenly it seems to be the accepted wisdom in the mainstream 
press that Federal support for the running of the Internet is a 
thing of the past and that we no longer need be concerned about 
the NSF or any other part of the feds trying to pick winners in 
the NREN /NII ballgame.

**The common phrase that is heard again and again is that in 
just a few months (April 30 1994) the NSF is gonna stop buying 
the back bone and get out of the funding game.**

Problem is if the winner were announced tomorrow, I have yet 
to hear anyone who believes that the new network 
infrastructure could be ready for an operational switch over by 
May 1.  By the NSF's own reckoning (announced almost 2 years 
ago) NSF will need a full year for the switch over once the new 
cooperative agreement is announced.

Therefore it seems we have three possibilities:

Scenario A:

NSF awards solicitation to a new group of entities necessitating a 
phase out of MERIT and the ANS/NSF backbone.  The phase out 
begins April 30th and runs probably for a year while the other 
project ramps up and gets ready for the big switch over.  Now 
NSF has a budget that it itself estimated as 18 million a year for 
the NEW infrastructure, PLUS an overlapping project cost of the 
current million dollar a month project - the cost of which is NOT 
likely to be lowered.  (Eric Aupperle has already informed Wolff 
that MERIT will require extra funds for a close down period *IF* 
NSF chooses someone else.)  So Scenario A *could* represent an 
INCREASE in NSF spending from 12 million to as much as 30 
million a year effective April 30 1994.  Hardly what Rutkowskii 
and TIME talk about.

But perhaps there *IS* a way that spending might not increase 
so radically?  As a reult we have:

Scenario B:

The NSF has no need of an extension *IF*, as its cost sharing, ANS 
says it will run the ANS/NSF backbone at no additional charge 
during a phase over to the operation of a new VBNS and network 
access points which it also runs with its new partner Northern 
Telecom in a very "model" of NAFTA cooperation.  Once again 
IBM, MCI and now NT have a taxpayer funded seat at the top of 
the nation's most important data infrastructure.  The current 
backbone goes away and is replaced by the inter regional 
connectivity program for which the NSF pays *full freight* for 
the first year.  Indeed the ANSnet backbone could simply be 
renamed as the NSFnet interregional infrastructure.  Boom now 
the NSF is out of the backbone business and into the 
interregional infrastructure business.  Slight of hand -- now you 
see it now you don't!

Meanwhile ANS takes new money from NSF along with its new 
$5 million from NT and starts teachning Magellan how to speak 
TCP/IP over ATM at OC-3.  (Translation:  it starts building the 
VNBS.)  The apparent end of all these machinations would be 
that finally NSF achieves what everyone felt it had in mind back 
in 1991 - an indefinite transfer of the pinnacle of national 
network infrastructure into the hands of ANS.

Or perhaps there is

Scenario C:

Some *other* explanation that is obvious to Wolff but not to the 
rest of us and since he isn't talking how are we to know?


Why is the NSF doing all this?  Why is it creating an expectation 
that it is getting out of the business and spending less not more?  
Hard to say.  But I can see things in 6 weeks when the 
continuation of ANS's grant is announced:  "well," says Steve, "we 
looked around and came to the ultimate realisation that the only 
way we could keep our costs from exploding as we were 
promising people like Tony R and Philip Elmer-D we'd do was to 
stay with the good folks from Ann Arbour who have been doing 
such a fine job."

The facts that are known and the ones that are alleged don't 
mesh with each other very well -- unless, that is, scenario B 
turns out to be accurate.

In August and September of 1993 talk of legal action against the 
solicitation was in the air.  Such actions contemplated obtaining 
an injunction against another extension.  Whether or not  the 
threat of legal action has entirely disappated isn't clear.  If the 
threat were still there, the NSF would probably be even more 
reluctant to tip its hand as to an extension.  As long as one is not 
announced what is there to enjoin?

Given the current situation, the question of NSF plans for an 
extension seems increasingly relevant.  Consequently, on 
November 15, *almost a month* ago I sent a FOIA request to 
NSF.  Two questions-- short and sweet -- requiring a few 
seconds to answer:  will you offer MERIT an extension?  Yes or 
no.  If yes for how long?

The NSF FOIA office seemed to think a request that short and 
specific could be answered within the regulation 10 working 
days.  So on December 1 they told me they'd have some news on 
Friday the third and if the news was anything other than that 
the answer would be in the mail by then they'd call me.  When 
by Weds the 8th I heard nothing I started to call again daily and 
after many calls the answer I have now is Steve Wolff has been 
reminded more than once that he must act on the request and 
either divulge the information or explain why he is exempt from 
doing so.  So far he has done neither - to the discomfort of the 
legislative and public affairs people.  They promise that they will 
continue to pursue the matter with him as they are legally 
required to do.  Others have also told me their FOIA requests are 
being ignored.  (Makes one wonder if any one besides Steve 
Wolff is in control of this operation?)

The question of an extension is almost certainly an action that 
has been decided upon (perhaps I should ask the FOIA folk to 
ask grants and contracts?).  On the other hand if grants and 
contracts knows - as well as Steve - could I not assume that the 
FOIA people would go there on my behalf?  My letter asked 
whether it had been done and by no means specified Wolff as 
the only source of an acceptable answer.

For sure people are playing games:  I received mail last Weds 
from a machine set up to mail anonymously (not the Finland 
mailer) with an "off record" tip as to what NSF would do about 
the renewal.  When I forwarded it from path.net to my account 
on tmn.com some received from lines finaly popped into the 
header.  The source of the mailing site?  An office of one of the 
key players.  Truthful or disingenuous?  I'd guess the latter since 
legitimate sources generally appear with their own name, once 
assurances are given.

So it certainly appears that the NSF is stone-walling in an 
arbitrary and capricious manner -- waiting until the last 
moment to spring its brave new world on us all -- while 
spreading propaganda that, if true, it can use to justify an 
indefinite extension of the status quo, and, if false, may be 
announced so close to the april 30 deadline as to preclude action 
by its adversaries.

[This posting may be reposted, but please, ONLY in its entirety.]

_______________________________________________________________
Gordon Cook, Editor Publisher:  COOK Report on Internet -> NREN
431 Greenway Ave, Ewing, NJ 08618
cook@path.net					(609) 882-2572
_______________________________________________________________

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