📄 rfc1192.txt
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organization -- and so its ability to reinvest retained earnings. Operation of the backbone on a for-profit basis would attract private investment and could be conducted with relative efficiency. However, given the dominant position of the backbone, a for-profit operation could conceivably get entangled in complex antitrust, regulatory, and political struggles. A nonprofit organization is not immune from such risks, but to the extent its users are represented in policy- making, tensions are more likely to get expressed and resolved internally. The status of backbone or regional networks within the Internet is entirely separate from the question of whether network services are metered and charged on a usage basis. Confusion in this regard stemsKahin [Page 9]RFC 1192 Commercialization of the Internet November 1990 from the fact that the low-speed public data networks (SprintNet, TymNet), which are sometimes seen as competitive to Internet services, do bill on a connect-time basis. However, these commercial services use X.25 connection-based packet-switching -- rather than the connectionless (datagram) TCP/IP packet-switching used on the Internet. Internet services could conceivably be billed on per- packet basis, but the accounting overhead would be high and packets do not contain information about individual users. At bottom, this is a marketing issue, and there is no evidence of any market for metered services -- except possibly among very small users. The private suppliers, Alternet and PSI, both sell "pipes" not packets.Privatization by Function As an alternative approach to encouraging privatization, Dr. Wolff suggested barring mature services such as electronic mail from the subsidized network. In particular, NSF could bar the mail and news protocols, SMTP and NNTP, from the backbone and thereby encourage private providers to offer a national mail backbone connecting the regional networks. Implementation would not be trivial, but it would arguably help move the academic and research community toward the improved functionality of X.400 standards. It would also reduce traffic over the backbone by about 30% -- although given continued growth in traffic, this would only buy two months of time. If mail were moved off the regional networks as well as off the NSFNET backbone, this would relieve the more critical congestion problem within certain regions. But logistically, it would be more complicated since it would require diverting mail at perhaps a thousand institutional nodes rather than at one or two dozen regional nodes. Politically, it would be difficult because NSF has traditionally recognized the autonomy of the regional networks it has funded, and the networks have been free to adopt their own usage guidelines. And it would hurt the regional networks financially, especially the marginal networks most in need of NSF subsidies. Economies of scale are critical at the regional level, and the loss of mail would cause the networks to lose present and potential members.The National Research and Education Network The initiative for a National Research and Education Network (NREN) raises a broader set of policy issues because of the potentially much larger set of users and diverse expectations concerning the scope and purpose of the NREN. The decision to restyle what was originally described as a National Research Network to include education was an important political and strategic step. However, this move to a broader purpose and constituency has made it all the more difficultKahin [Page 10]RFC 1192 Commercialization of the Internet November 1990 to limit the community of potential users -- and, by extension, the market for commercial services. At the regional, and especially the state level, public networking initiatives may already encompass economic development, education at all levels, medical and public health services, and public libraries. The high bandwidth envisioned for the NREN suggests a growing distance between resource-intensive high-end uses and wide use of low-bandwidth services at low fixed prices. The different demands placed on network resources by different kinds of services will likely lead to more sophisticated pricing structures, including usage-based pricing for production-quality high-bandwidth services. The need to relate such prices to costs incurred will in turn facilitate comparison and interconnection with services provided by commercial vendors. This will happen first within and among metropolitan areas where diverse user needs, such as videoconferencing and medical imaging, combine to support the development of such services. As shown in Figures 1. and 2., the broadening of scope corresponds to a similar generalization of structure. The path begins with mission-specific research activity organized within a single computer. It ends with the development of a national or international infrastructure: a ubiquitous, orderly communications system that reflects and addresses all social needs and market demand, without being subject to artificial limitations on purpose or connection. There is naturally tension between retaining the benefits of specialization and exclusivity and seeking the benefits of resource-sharing and economies of scale and scope. But the development and growth of distributed computing and network technologies encourage fundamental structures to multiply and evolve as components of a generalized, heterogeneous infrastructure. And the vision driving the NREN is the aggregation and maturing of a seamless market for specialized information and computing resources in a common, negotiable environment. These resources have costs which are far greater than the NREN. But the NREN can minimize the costs of access and spread the costs of creation across the widest universe of users.Kahin [Page 11]RFC 1192 Commercialization of the Internet November 1990Figure 1. Generalization of Purpose: Discipline-Specific Research CSNET, HEPnet, MFEnet General Research early NSFNET, "NRN" Research and Education BITNET, present NSFNET, early "NREN" Quasi-Public many regional networks, "NREN" National Infrastructure "commercialized NREN" _______________________________________________________________Figure 2. Generalization of Structure: Computer time-sharing hosts Network early ARPANET Internetwork ESNET, NSFNET (tiered) Multiple Internetworks present Internet Infrastructure "NREN"Workshop Participants Rick Adams, UUNET Eric Aupperle, Merit Stanley Besen, RAND Corporation Lewis Branscomb, Harvard University Yale Braunstein, University of California, Berkeley Charles Brownstein, National Science Foundation Deborah Estrin, University of Southern California David Farber, University of Pennsylvania Darleen Fisher, National Science Foundation Thomas Fletcher, Harvard University Kenneth Flamm, Brookings Institution Lisa Heinz, U.S. Congress Office of Technology Assessment Fred Howlett, AT&T Brian Kahin, Harvard University Robert Kahn, Corporation for National Research Initiatives Kenneth King, EDUCOMKahin [Page 12]RFC 1192 Commercialization of the Internet November 1990 Kenneth Klingenstein, University of Colorado Joel Maloff, CICNet Bruce McConnell, Office of Management and Budget Jerry Mechling, Harvard University James Michalko, Research Libraries Group Elizabeth Miller, U.S. Congress Office of Technology Assessment Eli Noam, New York State Public Service Commission Eric Nussbaum, Bellcore Peter O'Neil, Digital Equipment Corporation Robert Powers, MCI Charla Rath, National Telecommunications and Information Administration, Department of Commerce Ira Richer, Defense Advanced Research Projects Agency William Schrader, Performance Systems International Howard Webber, Digital Equipment Corporation Allan Weis, IBM Stephen Wolff, National Science FoundationSecurity Considerations Security issues are not discussed in this memo.Author's Address Brian Kahin Director, Information Infrastructure Project Science, Technology & Public Program John F. Kennedy School of Government Harvard University Phone: 617-495-8903 EMail: kahin@hulaw.harvard.eduKahin [Page 13]
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