United States General Accounting Office
 _____________________________________________________________________________
 GAO                         Report to Congressional Requesters



 _____________________________________________________________________________
 August 1991                 HIGH-PERFORMANCE COMPUTING

                             High-Speed Computer
                             Networks in the United
                             States, Europe, and Japan






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 GAO/IMTEC-91-69



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 _____________________________________________________________________________
 GAO                    United States
                        General Accounting Office
                        Washington, D.C. 20548
                        ______________________________________________________
                        Information Management and
                        Technology Division

                        B-245190

                        September 4, 1991

                        The Honorable Ernest F. Hollings
                        Chairman, Senate Committee on Commerce,
                          Science, and Transportation
                        United States Senate

                        The Honorable Albert Gore
                        Chairman, Subcommittee on Science,
                          Technology, and Space
                        Senate Committee on Commerce, Science,
                          and Transportation
                        United States Senate

                        The Honorable George E. Brown, Jr.
                        Chairman, House Committee on Science,
                          Space, and Technology
                        House of Representatives

                        The Honorable Robert S. Walker
                        Ranking Minority Member
                        House Committee on Science, Space,
                          and Technology
                        House of Representatives

                        The Honorable Tim Valentine
                        Chairman, Subcommittee on Technology
                          and Competitiveness
                        House Committee on Science, Space,
                          and Technology
                        House of Representatives

                        The Honorable Tom Lewis
                        Ranking Minority Member
                        Subcommittee on Technology
                          and Competitiveness
                        House Committee on Science, Space,
                          and Technology
                        House of Representatives












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                        In letters dated October 2, 1990, and March 11, 1991,
                        you requested that we review United States and foreign
                        efforts to develop high-speed computer networks.  In
                        response to your requests, this report provides
                        information on United States,  European, and Japanese
                        efforts to develop high-speed computer networks.
                        Because high-speed computer networks used for research
                        and education are of primary interest in the United
                        States, the report specifically focuses on these types
                        of applications.

                        In conducting our review, we identified high-speed
                        networks, or in cases where none existed, lower-speed
                        networks that were considered to be important for
                        research and education.  We defined high-speed
                        networks as those capable of transmitting data at, or
                        greater than, T1 speeds of 1.544 megabits per second,
                        or E1 speeds of 2.048 megabits per second.#1  European
                        and Japanese networks were identified with the
                        assistance of experts familiar with their use of
                        computer and communications technology.#2  Detailed
                        descriptions of the United States, European, and
                        Japanese networking initiatives we observed are
                        contained in appendixes I, II, and III, respectively.
                        Appendix IV provides additional information on the
                        objectives, scope, and methodology of our review, and
                        appendixes V and VI identify the government entities
                        and other organizations that we contacted in Europe
                        and Japan.

 #####################________________________________________________________
 RESULTS IN BRIEF       Currently, the United States leads Europe and Japan in
                        the development of high-speed computer networks for
                        research and education.  Efforts to increase data
                        transmission speeds on a major portion of the United
                        States' Internet to 1.544 megabits per second (T1) and
                        45 megabits per second (T3), and plans to develop a
                        National Research and Education Network (NREN)
                        operating at gigabit speeds,#3 exceed most plans and
                        initiatives occurring in Europe and Japan at this
                        time.  Although some questions concerning the
                        development and operation of NREN must still be

                        ______________________________________________________
                             1  T1 is the term commonly used for the high-
                        speed digital standard in the United States and other
                        countries such as Japan and Korea.  Europe has
                        standardized on E1, which differs from T1 in speed,
                        signalling methods, and number of voice circuits
                        supported.

                             2  We limited our review to five European
                        countries--France, Germany, Italy, the Netherlands,
                        and the United Kingdom.

                             3  A gigabit equals one billion bits.

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                        answered, federal and academic sponsors of this
                        networking initiative are nonetheless moving
                        aggressively on this effort.

                        Although their networks are generally less developed
                        than those in the United States, Europe and Japan
                        clearly recognize the importance of high-speed
                        networks, and have plans and projects under way to
                        enhance the speed and capability of these networks.
                        Some European participants, in particular, believe the
                        United States' proposed NREN represents the kind of
                        network that is needed in Europe.  Presently, however,
                        Europe and Japan face a number of financial,
                        organizational, and other issues, which if not
                        addressed, could prevent the development or expansion
                        of their network infrastructures.  European and
                        Japanese officials told us they are working to resolve
                        these issues.  If they are successful in these
                        efforts, Europe and Japan may be able to strengthen
                        their positions in advancing research and education
                        through the use of high-speed computer networks.

 #####################________________________________________________________
 BACKGROUND             Computer networks enable both local and long distance
                        communication between computers, often over public
                        telephone lines, but also via dedicated switching and
                        transmission systems.  Computer networks transmit data
                        at various speeds to meet the needs of many different
                        user communities throughout the world.  Traditionally,
                        computer networks transmitted data at relatively low
                        speeds measured primarily in kilobits per second.  The
                        early 1980s, however, saw a growing demand for
                        increasingly higher-speed computer networks.
                        Currently, regional and wide-area national networks
                        operate at T1 speeds of 1.544 megabits per second in
                        the United States or E1 speeds of 2.048 megabits per
                        second in some European countries.  Local-area
                        networks transmitting data at speeds of between 10
                        megabits per second and 100 megabits per second also
                        exist.  These higher-speed networks have fueled the
                        market for a variety of applications, including
                        electronic mail, distributed data base access, large
                        file transfer, and graphics transmission.

                        Although regional and wide-area networks transmitting
                        data at speeds of between 1 and 2 megabits per second
                        are generally considered sufficient for many network
                        applications, sophisticated advances in computer and
                        communications technologies and increased volumes and
                        complexity of data traffic have contributed to a
                        growing demand for higher-capacity networks that are
                        capable of transmitting data at T3 speeds of 45
                        megabits per second, and up to a gigabit per second.
                        One sector of society expressing a need for the
                        higher-speed networks is the research and education

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                        community.  Scholars, researchers, executives, and
                        politicians in both the United States and overseas
                        recognize the importance of networking to access
                        unique experimental data, share results and
                        publications, and run models on remote supercomputers.

 ###################__________________________________________________________
 NETWORKING IN THE      The United States research and education communities
 UNITED STATES          are served primarily by the Internet, a loosely
                        organized system of interconnected, unclassified
                        computer networks linking over 500,000 computers
                        nationwide and overseas.  The United States' portion
                        of the Internet includes government-funded national
                        backbone networks and publicly and privately funded
                        regional networks operating at 1.544 megabits per
                        second (T1), as well as private local-area networks
                        transmitting data at speeds of 10 megabits per second
                        to 100 megabits per second.  One of the major backbone
                        networks comprising the United States' portion of the
                        Internet is the National Science Foundation Network
                        (NSFNet).#4  NSFNet links more than 3,000 networks at
                        university and college campuses, business and
                        industrial research laboratories, and governmental
                        research centers throughout the world.

                        Currently, the United States' portion of the Internet
                        is experiencing rapid growth in the number of networks
                        and host computers connected to it, and is unable to
                        satisfy all requirements of the research and education
                        community.  Traffic on NSFNet, alone, has increased by
                        more than 25 times in the last 2 years.  Approximately
                        3 million researchers worldwide actively use the
                        academic networks connected to the Internet.  In
                        addition, supercomputers and other sophisticated
                        applications used by some organizations require
                        higher speeds than are currently available on the
                        existing networks.

                        To enhance network services for the research and
                        education community, federal sponsors and academic
                        participants plan to transform the United States'
                        portion of the Internet into a higher-speed network
                        with nationwide coverage.  Toward this goal, the
                        National Science Foundation (NSF) has upgraded most
                        telecommunications links on the NSFNet backbone to
                        transmit data at a speed of 1.544 megabits per second,
                        and is further increasing data transmission speeds to
                        45 megabits per second for some agencies.  On a

                        ______________________________________________________
                             4  Other federal agencies operating networks on
                        the Internet include the Defense Advanced Research
                        Projects Agency, the Department of Energy, the
                        Department of Health and Human Services, and the
                        National Aeronautics and Space Administration.

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                        broader scale, the Congress is considering
                        legislation and plans for developing NREN operating at
                        gigabit speeds.  NREN is expected to emerge from and
                        expand existing capabilities of the United States'
                        portion of the Internet.  As envisioned, this network
                        ultimately will be capable of transmitting end-to-end
                        at rates of between 1 and 3 billion bits of data per
                        second--approximately 50,000 typed pages per second--
                        and will connect researchers in industry and academia
                        to supercomputers and other information resources
                        around the country.

                        Plans for creating NREN are being led at the federal
                        level by the White House Office of Science and
                        Technology Policy and the Federal Networking Council,
                        a collaboration of various agencies, including NSF,
                        the Defense Advanced Research Projects Agency (DARPA),
                        the Department of Energy, the Department of Health and
                        Human Services, and the National Aeronautics and Space
                        Administration.  The President's fiscal year 1992
                        budget request seeks $92 million for work related to
                        developing NREN.  In addition, the Corporation for
                        National Research Initiatives, a nonprofit
                        organization created in 1986, has received a 3-year
                        award of approximately $15.8 million from NSF and
                        DARPA to lead research to determine the technology and
                        possible structure of a gigabit network and identify
                        possible end-user requirements for such a network.  As
                        NREN's infrastructure takes shape, however, its
                        sponsors are being tasked to answer questions
                        concerning how the network should be managed, funded,
                        and secured.  One central question, for example, is
                        whether management of NREN should be decentralized
                        among network researchers, users, and sponsors, or
                        whether one organization should assume a dominant role
                        in its management.

 #####################________________________________________________________
 EUROPEAN RESEARCH      European research and education communities are
 AND EDUCATION          supported by an infrastructure of national and pan-
 NETWORKS               European networks.  Generally, the European networks
                        are slower than networks existing in the United
                        States.  Many of the national networks, such as the
                        ones we reviewed in Germany, Italy, the Netherlands,
                        and the United Kingdom, were created in the mid to
                        late 1980s through government initiatives to provide
                        scientific and technical research capabilities within
                        individual countries.  These networks connect
                        universities and research institutions at data
                        transmission speeds ranging from 64 kilobits per
                        second to 2 megabits per second.  Overall, the
                        national networks provide good levels of connectivity
                        and service within the countries they serve.



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                        The pan-European networks, which enable cross-border
                        communications between countries, provide slower and
                        less extensive service than the national networks.
                        Most of the existing pan-European networks, such as
                        the European Academic Research Network and the High
                        Energy Physics Network, are designed to meet the needs
                        of specific user groups and do not provide a general-
                        purpose backbone infrastructure to connect all of the
                        national networks.  The pan-European networks
                        generally operate at relatively low speeds of 4.8 to
                        64 kilobits per second.

                        The Commission of the European Communities,#5 national
                        network operators, and various associations of
                        European networks and users believe that more capable,
                        higher-speed research and education networks are
                        needed in Europe.  Moreover, some of these
                        participants view the United States' proposed NREN as
                        an example of what is needed.  In response to
                        increasing needs, national network operators in the
                        countries we observed either have already begun
                        upgrading existing networks or plan to develop high-
                        speed networks over the next few years.  In addition,
                        European network organizations and the Commission of
                        the European Communities told us that progress is
                        being made toward establishing a pan-European
                        backbone network linking the national networks.  Some
                        officials noted that higher speeds could be available
                        on a pan-European network by the mid-1990s.

                        European officials told us that several issues,
                        unless resolved, may slow or prevent progress on
                        planned enhancements to the national research and
                        education networks and implementation of a high-
                        speed, pan-European backbone network.  According to
                        these officials, although much of the technology
                        needed to implement a pan-European network is
                        available, issues concerning how to organize and fund
                        the network still need to be addressed.  Some
                        officials reported that Europe currently lacks a
                        cohesive central organizational structure and a
                        supportive regulatory environment to guide the pan-
                        European initiatives.  In the absence of central
                        leadership, cross-border telecommunications services
                        are difficult and expensive to obtain.  Various
                        organizations, such as the European Engineering
                        Planning Group (EEPG) and the Reseaux Associes pour la

                        ______________________________________________________
                             5  The Commission of the European Communities
                        proposes and enforces policies and laws that apply to
                        the 12 countries making up the European Community--
                        Belgium, Denmark, France, Germany, Greece, Ireland,
                        Italy, Luxembourg, the Netherlands, Portugal, Spain,
                        and the United Kingdom.

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                        Recherche Europeenne (RARE), an association of
                        networking organizations and users in Europe, are
                        optimistic that these issues can be resolved and have
                        taken steps toward this goal.  RARE has sponsored
                        networking symposiums to highlight user needs for
                        high-speed networks and EEPG has proposed an
                        organization structure and approaches for funding and
                        implementing a pan-European backbone network.

 #####################________________________________________________________
 JAPANESE RESEARCH      In Japan, various government-funded and privately
 AND EDUCATION          operated computer networks support research and
 NETWORKS               education.  However, some Japanese officials believe
                        that fewer and less advanced networks exist in Japan
                        than in the United States.  The existing networks
                        connect Japan's major universities, and enable
                        communications between researchers at other
                        laboratories and research facilities.  Generally,
                        these networks do not have high-speed data
                        transmission capabilities.  Among the networks that we
                        observed, only one, the Science Information Network
                        operated by the National Center for Science
                        Information System, provided a high-speed (T1)
                        backbone.  Most of Japan's other research and
                        education networks operate at relatively low speeds of
                        192 kilobits per second or less.

                        Japanese officials considered high-speed networks to
                        be important for research and education and told us
                        that government and privately sponsored initiatives
                        are being actively pursued to enhance Japan's computer
                        networking capabilities.  One of Japan's most
                        significant undertakings involves its recently
                        announced plans to invest approximately $250 billion
                        to equip businesses and homes with a broadband
                        Integrated Services Digital Network (ISDN) by the year
                        2015.  Under this plan, Nippon Telegraph and Telephone
                        Corporation (NTT) will use fiber-optic cable to link
                        Japanese homes and businesses, enabling the
                        transmission of digitized voice, data, and video
                        traffic, and providing a standard way for computers
                        and other equipment to share information at high
                        speeds.  NTT envisions providing such advanced
                        services as 3-D video communications and automatic
                        translation communications.

                        Japan's success in developing a broadband ISDN and
                        other high-speed computer networks may depend on
                        factors such as its ability to obtain the necessary
                        funding for these efforts and to gain coordinated
                        support from the Japanese government ministries.  Some
                        network operators and representatives of the Japanese
                        ministries believe that increasing the number and
                        capability of computer networks will, in part, depend
                        on how well the networks compete with other programs

                        Page 8             GAO/IMTEC-91-69 High-Speed Networks

 ______________________________________________________________________________
                        B-245190

 ______________________________________________________________________________
                        for government funding.  In addition, successful
                        implementation of the broadband ISDN may require more
                        accurate definition of customer needs for this
                        service.

 _____________________________________________________________________________
                        The information in this report is based primarily on
                        testimonial evidence.  Although we did not
                        independently verify its validity and accuracy, we did
                        discuss the information with various government
                        officials and representatives of European and Japanese
                        networking organizations, and have included their
                        comments where appropriate.  Our work was performed
                        from October 1990 to June 1991.

                        As agreed with your office, unless you publicly
                        announce the contents of this report earlier, we plan
                        no further distribution until 30 days from the date of
                        this letter.  At that time, we will send copies to
                        interested congressional committees and others upon
                        request.  Should you have any questions concerning
                        this report, please contact me at (202) 275-3195.  The
                        major contributors to this report are listed in
                        appendix VII.




                        Jack L. Brock, Jr.
                        Director
                        Government Information
                          and Financial Management
























                        Page 9             GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
 CONTENTS

 #####################________________________________________________________
 LETTER                                                                      1

 #####################________________________________________________________
 APPENDIX I                                                                 13
 UNITED STATES PLANS    Description of the Internet Infrastructure          13
 FOR BUILDING THE       Creation of a National Research and Education       15
 NATIONAL RESEARCH AND      Network
 EDUCATION NETWORK      Issues Need to Be Addressed to Implement NREN       16

 #####################________________________________________________________
 APPENDIX II                                                                18
 HIGH-SPEED COMPUTER    National Networks Provide Connectivity and Service  18
 NETWORKS SUPPORTING        Within Their Respective Countries
 RESEARCH AND           Pan-European Networks Meet the Needs of Specific    24
 EDUCATION IN EUROPE        Groups
                        Need for an Improved High-Speed Pan-European        26
                            Research and Education Backbone Network
                        Organization and Funding Issues Must Be Resolved    30
                            to Implement a Pan-European Backbone Network

 #####################________________________________________________________
 APPENDIX III                                                               32
 HIGH-SPEED COMPUTER    Japanese Research and Education Networks Provide    32
 NETWORKS SUPPORTING        Relatively Low-Speed Capability
 RESEARCH AND           Plans for Future Networks in Japan                  36
 EDUCATION IN JAPAN     Issues Affecting Japan's Future Development of      39
                            Computer Networks

 #####################________________________________________________________
 APPENDIX IV                                                                40
 OBJECTIVES, SCOPE,
 AND METHODOLOGY

 #####################________________________________________________________
 APPENDIX V                                                                 42
 ORGANIZATIONS AND      European Countries                                  42
 ENTITIES CONTACTED     Pan-European Representatives                        43
 REGARDING EUROPEAN
 NETWORKS

 #####################________________________________________________________
 APPENDIX VI                                                                44
 ORGANIZATIONS AND
 ENTITIES CONTACTED
 REGARDING JAPANESE
 NETWORKS

 #####################________________________________________________________
 APPENDIX VII                                                               45
 MAJOR CONTRIBUTORS
 TO THIS REPORT






                        Page 10            GAO/IMTEC-91-69 High-Speed Networks
 _____________________________________________________________________________
                        Contents

 _____________________________________________________________________________

                        ______________________________________________________
                        Abbreviations

                        ATM            asynchronous transfer mode
                        BITnet         Because It's Time Network
                        CERN           Centre Europeenne pour la Recherche
                                          Nucl aire
                        COSINE         Cooperation of Open Systems
                                          Interconnection Networking in Europe
                        DARPA          Defense Advanced Research Projects
                                          Agency
                        DECNET         Digital Equipment Corporation Network
                        DFN            Deutsche Forschungsnetz
                        EARN           European Academic Research Network
                        EASInet        European Academic Supercomputer
                                          Initiative Network
                        ECU            European currency unit
                        EEPG           European Engineering Planning Group
                        GAO            General Accounting Office
                        GARR           Group for the Harmonization of Research
                                          Networks
                        HEPnet         High-Energy Physics Network
                        IBC            integrated broadband communication
                        IBM            International Business Machines
                                          Corporation
                        IMTEC          Information Management and Technology
                                          Division
                        ISDN           Integrated Services Digital Network
                        IXI            International X.25 Infrastructure
                        JANET          Joint Academic Network
                        JICST          Japan Information Center of Science and
                                          Technology
                        JUNET          Japanese University Network
                        KEK            National Laboratory for High-Energy
                                          Physics
                        MITI           Ministry of International Trade and
                                          Industry
                        NACSIS         National Center for Science Information
                                          System
                        NREN           National Research and Education Network
                        NSF            National Science Foundation
                        NSFNet         National Science Foundation Network
                        NTT            Nippon Telegraph and Telephone
                                          Corporation
                        OSI            Open Systems Interconnection
                        PACCOM         Pacific Area Computer Communication
                        PTM            packet transfer mode
                        PTT            Postal, Telegraph, and Telephone
                                          Administration
                        RACE           Research and Development in Advanced
                                          Communications Technologies in
                                          Europe
                        RARE           Res aux Associes pour la Recherche
                                          Europeenne


                        Page 11            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Contents

 _____________________________________________________________________________

                        SURF           Samenwerkende Universitaire
                                          Rekenfaciliteiten
                        TCP/IP         transmission control protocol/internet
                                          protocol
                        WIDE           Widely Integrated Distributed
                                          Environment


















































                        Page 12            GAO/IMTEC-91-69 High-Speed Networks

 Appendix I
 _____________________________________________________________________________
 UNITED STATES PLANS FOR BUILDING THE
 NATIONAL RESEARCH AND EDUCATION NETWORK

 ____________________________________________________________________________
                        To better support research and education in the United
                        States, federal and academic sponsors have proposed
                        developing the National Research and Education Network
                        (NREN).  As planned, NREN will provide a high-
                        capacity, high-quality network infrastructure to
                        ultimately transport digitized information at several
                        billion bits per second between high-performance
                        computational resources, such as supercomputers, and
                        individual workstations.  NREN will build on the
                        United States' portion of the Internet, the existing
                        system of loosely connected, unclassified networks
                        that links computers nationwide and overseas.
                        Currently, the number of networks and computers
                        connected to the Internet is increasing rapidly, as
                        are demands for greater network capacity to support
                        researchers in conducting complex analyses combining
                        local and remote resources.  NREN supporters envision
                        creating a network that will meet increased demands
                        for a higher-speed computer network offering
                        nationwide coverage.

 #####################________________________________________________________
 DESCRIPTION OF         The Internet consists of over 5,000 interconnected
 THE INTERNET           networks that link approximately 500,000 computers
 INFRASTRUCTURE         worldwide.  The United States' portion of the Internet
                        consists of government-funded national backbone
                        networks, publicly and privately supported regional
                        networks, and local-area campus networks.  Some of the
                        regional and backbone networks comprising the United
                        States' portion of the Internet transmit data at a
                        speed of 1.544 megabits per second (T1).  Private
                        local-area networks on the Internet operate at data
                        transmission speeds of 10 to 100 megabits per second.
                        One of the major backbone networks on the United
                        States' portion of the Internet is the National
                        Science Foundation network (NSFNet).  NSFNet connects
                        more than 3,000 networks at university and college
                        campuses, businesses, industrial research
                        laboratories, and governmental research centers
                        worldwide.

                        Management of the Internet is decentralized.  Each of
                        the networks within the Internet is operated
                        independently and has its own operations center that
                        monitors and maintains its portion of the Internet.
                        Funding for the United States' portion of the Internet
                        comes from the five federal agencies operating








                        Page 13            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix I
                        United States Plans for Building the National
                        Research and Education Network

 _____________________________________________________________________________
                        national research networks and from universities,
                        states, and private companies that operate and use the
                        local and regional networks.#6  Participating
                        institutions generally pay fixed annual fees to
                        connect to the regional networks of between $10,000 to
                        $50,000 per year, depending on the size of the
                        institution and the carrying capacity of the
                        telecommunications channel connecting it to the
                        network.

                        Researchers use the Internet for a variety of
                        applications.  For example, electronic mail provides a
                        way of sending person-to-person messages almost
                        instantaneously, enabling researchers separated by
                        thousands of miles to collaborate.  Other uses of the
                        Internet include file transfer, access to software and
                        document libraries, and remote access to computer data
                        banks and supercomputers.  Access to supercomputers,
                        in particular, has had a dramatic impact on scientific
                        endeavors.  Experiments that took years to complete on
                        an ordinary computer can be performed in days or weeks
                        on a supercomputer.

 _____________________________________________________________________________
 Limitations of         Presently, the number of users of the Internet is
 the Existing           growing, as is the need for more extensive high-speed
 Infrastructure         data networking capacity.  Approximately 3 million
                        researchers worldwide actively use the academic
                        networks connected to the Internet.  Data traffic on
                        the NSFnet backbone alone has increased by more than
                        25 times in the last 2 years.  As a result of its
                        continual growth, the United States' portion of the
                        Internet is unable to satisfy all the requirements of
                        the research and education community.  In addition,
                        supercomputers and other sophisticated applications
                        used by some organizations require higher speeds than
                        are currently available on the existing networks.









                        ______________________________________________________
                             6    The five federal agencies operating research
                        networks on the Internet are the Defense Advanced
                        Research Projects Agency, the National Science
                        Foundation, the Department of Energy, the National
                        Aeronautics and Space Administration, and the
                        Department of Health and Human Services.

                        Page 14            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix I
                        United States Plans for Building the National
                        Research and Education Network

 _____________________________________________________________________________

 #####################________________________________________________________
 CREATION OF A          The President's fiscal year 1992 budget requests $92
 NATIONAL RESEARCH      million for development of NREN.  In addition, the
 AND EDUCATION          Congress is considering legislation supporting its
 NETWORK                development.  The proposed High-Performance Computing
                        and Communications Act of 1991, for example, would
                        authorize the creation of a multi-gigabit-per-second
                        computer network linking government, researchers,
                        businesses, consumers, and schools in every state.

                        NREN is intended to dramatically expand and enhance
                        the capabilities of the United States' Internet.  As
                        envisioned, NREN ultimately will be capable of
                        transmitting end-to-end at rates of between 1 and 3
                        billion bits (gigabits) of data per second--the
                        equivalent of about 50,000 typed pages every second.
                        Such capacity is expected to greatly enhance the
                        ability of researchers to perform complex analyses
                        using remote resources.  For example, users will be
                        able to share libraries, data bases, supercomputers,
                        and other scientific technologies to perform
                        computational analyses and simulations that generate
                        very large, complex data, graphics, or video files.

                        Development of NREN is planned to occur in three
                        phases.  The first phase, begun in 1988, involved
                        upgrading all telecommunications links within the
                        NSFNet backbone to 1.544 megabits per second (T1).
                        This upgrade has been completed for most agencies.
                        The second phase, which is now under way, will provide
                        upgraded services for 200 to 300 research facilities,
                        using a shared backbone network with a carrying
                        capacity of 45 megabits per second (T3).  The third
                        phase, which will result in a gigabit-speed NREN
                        operating at roughly 50 times T3 speeds, is expected
                        to begin during the mid-1990s, if the necessary
                        technology and funding are available.

                        Plans for creating NREN are being overseen at the
                        federal level by the White House Office of Science and
                        Technology Policy and the Federal Networking Council,
                        a collaboration of NSF, DARPA, National Aeronautics
                        and Space Administration, the Department of Energy,
                        and the Department of Health and Human Services.  As
                        provided for in the Office of Science and Technology
                        Policy plan, NSF will serve as the lead agency for
                        coordinating the deployment of the operational NREN,
                        and DARPA will lead research and development on
                        advanced networking technology.





                        Page 15            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix I
                        United States Plans for Building the National
                        Research and Education Network

 _____________________________________________________________________________

 _____________________________________________________________________________
 Research and           Various research efforts are being conducted to yield
 Development for a      insights into the design and development of gigabit
 Gigabit Network        network technology.  One major project is being led by
                        the Corporation for National Research Initiatives, a
                        nonprofit organization, which received a 3-year award
                        of approximately $15.8 million from NSF and DARPA to
                        lead the research on gigabit technology.  This
                        research, which involves collaborators from
                        universities, national laboratories, supercomputer
                        centers, and major industrial organizations, is
                        intended to advance the technology and understanding
                        of requirements for high-speed networking by (1)
                        developing architectural alternatives for
                        consideration in determining the possible structure of
                        a wide-area gigabit network, and (2) exploring
                        possible applications for such a network.  Presently,
                        gigabit testbed facilities are being developed, and
                        work on the gigabit network applications has begun.

                        The gigabit research project revolves around a set of
                        five testbeds, each with its own research objective
                        and distinct research staff.  For example, one testbed
                        is exploring switching technology to determine whether
                        packet transfer mode or asynchronous transfer mode#7
                        is best suited for NREN.  Other testbeds are studying
                        different applications, such as weather modeling,
                        detection of earthquakes, and cancer research, to
                        assess whether they can be supported on NREN.  A mid-
                        course review of the progress of these testbeds is
                        scheduled for mid-September 1991.

 #####################________________________________________________________
 ISSUES NEED TO BE      As developers of NREN move to shape its
 ADDRESSED TO           infrastructure, they are being confronted with
 IMPLEMENT NREN         various policy issues concerning how the network
                        should be developed and organized.  These issues have
                        raised questions about the technology, security,
                        management, and funding of computer networks and
                        resources that will be linked to NREN.  As previously
                        discussed, developing NREN is expected to require
                        major departures from existing network technology to
                        handle networks operating at gigabit speeds.  Some

                        ______________________________________________________
                             7  Packet transfer mode (PTM) and asynchronous
                        transfer mode (ATM) are two switching approaches.  PTM
                        is based on variable-sized packets and is a method
                        being pursued within the data communications industry.
                        ATM uses small, fixed-size data packets, and is the
                        current proposal within the telephone carrier
                        standards community for the next generation of network
                        switching technology.

                        Page 16            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix I
                        United States Plans for Building the National
                        Research and Education Network

 _____________________________________________________________________________
                        experts have questioned whether existing computer
                        architectures, operating systems, and protocols are
                        able to respond to gigabit speeds.  It is expected
                        that in some cases, new computer interfaces, switches,
                        and data communication protocols will be required.

                        In addition, questions remain concerning how the
                        collection of networks comprising NREN should be
                        managed.  The collaboration among network researchers,
                        users, and sponsors that has guided the growth of
                        existing academic and research networks is considered
                        by some to be inadequate for managing NREN.
                        Currently, no single entity within the federal
                        establishment, higher education, or industry is
                        thought to be capable of ensuring the reliable and
                        timely introduction of improved networking services,
                        technology, and capacity.

                        Another issue concerns the privacy of information
                        carried over NREN.  Open access to NREN is an
                        essential element in creating an electronic community
                        of researchers with the broadest possible
                        participation by individuals and organizations in
                        government, education, and industry.  Maintaining an
                        open and easily accessible network that protects the
                        privacy and valuable resources of its users will
                        require a balance of legal and technological controls.

                        Realizing the benefits of NREN also will require major
                        financial investments over the next decade; however,
                        no decision on who will make these investments has yet
                        been reached.  Although the federal government has
                        thus far played a dominant role in financing research
                        networks, questions remain as to whether it can and
                        should be the sole provider for the development and
                        deployment of a gigabit NREN, or whether financing
                        should be a shared responsibility of federal research
                        sponsors, educational agencies and institutions, and
                        participating private sector organizations.















                        Page 17            GAO/IMTEC-91-69 High-Speed Networks

 Appendix II
 _____________________________________________________________________________
 HIGH-SPEED COMPUTER NETWORKS SUPPORTING
 RESEARCH AND EDUCATION IN EUROPE

 _____________________________________________________________________________
                        European research and education is supported by an
                        infrastructure of national and pan-European networks.
                        Although the national networks generally provide good
                        levels of connectivity and service within individual
                        countries, the pan-European links, which enable
                        cross-border communications between countries, are
                        relatively slower and serve more limited numbers of
                        users.  Various European networking organizations,
                        national network operators, and the Commission of the
                        European Communities, which makes policies and laws
                        that apply to the European Community members,#8
                        believe that the network infrastructures in place do
                        not adequately support all research and education
                        needs, and are acting to increase the speed and
                        capability of the national networks and establish a
                        reliable pan-European network infrastructure.  While
                        most officials are optimistic that higher-speed
                        networking capabilities will emerge in Europe, they
                        recognize that various funding and management issues
                        must first be resolved.  All of the national network
                        operators told us that the high cost of
                        telecommunications services in Europe limits their
                        plans to upgrade networks.

 #####################________________________________________________________
 NATIONAL NETWORKS      In Germany, Italy, the Netherlands, and the United
 PROVIDE CONNECTIVITY   Kingdom, national networks connect universities and
 AND SERVICE WITHIN     research institutions at speeds ranging from 64
 THEIR RESPECTIVE       kilobits per second to 2 megabits per second.#9  Some
 COUNTRIES              of the networks are based on the X.25
                        telecommunications protocol supporting other protocols
                        at higher layers.  Other networks support, or will
                        soon support, multiple protocols, including the










                        ______________________________________________________
                             8  The European Community members are Belgium,
                        Denmark, France, Germany, Greece, Ireland, Italy,
                        Luxembourg, the Netherlands, Portugal, Spain, and the
                        United Kingdom.

                             9  Other European countries such as Sweden,
                        Denmark, Finland, and Norway also have computer
                        networks operating at these speeds; however, these
                        countries were not included in our review.


                        Page 18            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        Internet Protocol.#10  All of these networks receive
                        financial support from their national governments.

 _____________________________________________________________________________
 Germany's National     The German national research and education network,
 Research Network       called the Deutsche Forschungsnetz (DFN), was
                        established in 1984.  This network is managed by the
                        DFN Association, which has more than 250
                        institutional members, including universities,
                        national research centers, and industrial companies.
                        The DFN Association contracts with the Deutsche
                        Bundespost, Germany's Postal, Telegraph, and
                        Telephone Administration (PTT), for the DFN network
                        and related services.  Currently, DFN links all of
                        Germany's universities and research centers using an
                        X.25 backbone service called WIN (Wissenschaftsnetz),
                        with access speeds of 64 kilobits per second.
                        Members pay a fixed fee, regardless of the extent of
                        usage, to use the network.

                        The DFN Association has an annual budget of about 30
                        million deutsche marks and is funded through federal
                        grants, membership fees, and service charges.#11
                        According to the director of this association,
                        expenditures are split between research and
                        development costs and the network's operating costs.
                        German Ministry of Research and Technology officials
                        told us their organization provides the association
                        with about 15 million deutsche marks per year to
                        support research in Open Systems Interconnection
                        technology and new system development.

                        The DFN Association plans to offer an upgraded speed
                        of 2 megabits per second on the DFN in the second half
                        of 1991.  However, the Director of the DFN Association
                        stated that because of the high cost, only 20 to 25
                        users have expressed interest in a higher speed
                        networking service; most users probably will continue

                        ______________________________________________________
                             10  X.25 is an International Standard protocol
                        that the European Postal, Telegraph, and Telephone,
                        Administrations have adopted for their public data
                        networks.  This protocol fits the International
                        Organization for Standardization's Open Systems
                        Interconnection (OSI) layering model.  The Internet
                        Protocol is a vendor-independent and widely available
                        Department of Defense standard protocol used for the
                        United States' Internet, but is not directly
                        compatible with the OSI protocol suite.

                             11   In June 1991, one dollar equaled about 1.78
                        deutsche marks.

                        Page 19            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        to rely on the 64 kilobits per second speed presently
                        available.  The DFN Association is now monitoring the
                        development and testing of networks with speeds higher
                        than 2 megabits per second.  Information gathered from
                        this project will provide a basis for deciding whether
                        Germany should implement a research and education
                        network operating at speeds greater than 2 megabits
                        per second.  The Director of DFN expects that such a
                        large-scale national project may be possible in about
                        2 years.

 _____________________________________________________________________________
 Italy's National       The Italian national network was created in 1989 to
 Research Network       link several scientific research networks.  The
                        Ministry of Universities, Research, and Technology
                        created the Gruppo Armonizzazione Reti di Ricerca
                        (GARR), or Group for the Harmonization of Research
                        Networks, to manage and supervise the connections of
                        the various scientific research networks.  A senior
                        adviser to the Minister for Universities, Research,
                        and Technology explained that, in 1988, the Italian
                        parliament passed a one-time appropriation of 50
                        billion lire to establish the GARR network and
                        purchase two supercomputers.#12  The GARR network
                        subsequently brought together three other Italian
                        research and education networks and three computer
                        centers.  To facilitate more effective resource
                        sharing and increase service, the three networks
                        agreed to consolidate their funds and eliminate
                        duplicative administrative costs.

                        The GARR network currently links more than 280
                        research laboratories throughout Italy, including
                        public and university laboratories and industrial
                        research establishments.  A technical executive
                        committee is responsible for managing the network,
                        which operates on lines leased from the Italian PTT.
                        The network provides access speeds of 64 kilobits per
                        second and 2 megabits per second.  The network uses
                        time-division multiplexing#13 to  support four





                        ______________________________________________________
                             12  In June 1991, one dollar equaled about 1,317
                        Italian lire.

                             13  Time-division multiplexing is a digital
                        transmission technique that allows multiple channels
                        to share a single line.


                        Page 20            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        protocols--Internet Protocol, X.25, DECNET, and
                        Systems Network Architecture.#14

                        According to a senior adviser to the Minister for
                        Universities, Research, and Technology, one-time
                        funding for the GARR network will be exhausted in late
                        1991, and future funding arrangements needed to
                        continue network operations are currently being
                        considered.  Italy plans to modify the GARR network in
                        1991, and again in 1992, to meet the growing needs of
                        its users by adding more nodes and more links to avoid
                        bottlenecks and to provide alternate routing
                        possibilities.  The Executive Manager of the GARR
                        network stated that the network's users currently have
                        a need for 140 megabits per second lines.  However,
                        there are no plans to provide network transmission
                        speeds greater than 2 megabits per second, primarily
                        because of the high cost of telecommunications
                        services.  After 1993, however, GARR network officials
                        plan to take advantage of expected cost reductions
                        resulting from the prospective liberalization of the
                        European telecommunications industry to increase the
                        network's speed.

 _____________________________________________________________________________
 The Netherlands'       The Dutch national research and higher education
 National Research      network, called SURFnet, was proposed as part of a
 Network                1984 government initiative that established the Surf
                        Foundation to better coordinate Dutch networking and
                        stimulate information technology.#15  The network was
                        not actually implemented until 1989, when SURFnet
                        B.V., a nonprofit limited liability company, was
                        formed to develop and operate the network.  SURFnet
                        B.V. has two shareholders--the SURF Foundation and the
                        Dutch PTT.

                        SURFnet links a total of 85 organizations, including
                        all Dutch universities, most government and private
                        research institutions, and the Dutch national
                        supercomputer site.  The network's main
                        infrastructure consists of an X.25 backbone based on

                        ______________________________________________________
                             14  DECNET is a set of proprietary protocols of
                        the Digital Equipment Corporation.  Systems Network
                        Architecture is a set of proprietary protocols of
                        International Business Machines (IBM).

                             15  The "SURF" acronym comes from the original
                        name, "Samenwerkende Universitaire Rekenfaciliteiten,"
                        or Cooperating University Computing Facilities.  SURF
                        is a Dutch organization roughly equivalent to a
                        foundation in the United States.

                        Page 21            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        64 kilobits per second leased lines and equipment.  To
                        meet the needs of its users, SURFnet B.V. also
                        supports the use of the Internet Protocol over the
                        X.25 backbone.

                        SURFnet's organization is somewhat different than that
                        of the other national research networks that we
                        reviewed in that its operations are managed by a
                        commercial entity separate from its policy-making
                        body.  In other words, the primary operator of the
                        network is SURFnet B.V.  However, the SURF Foundation,
                        comprised primarily of the network's users, has
                        overall policy-making authority and interacts with the
                        Dutch Ministry of Education and Science.

                        SURFnet is operated on a not-for-profit basis.  Its
                        annual operating costs of about 4 million European
                        Currency Units (ECUs)#16 are covered by service and
                        transport fees paid by network users, the SURF
                        Foundation, and the Ministry of Economic Affairs.
                        SURFnet has an annual budget of about 1 million ECUs
                        for research and development, paid by the Ministry of
                        Economic Affairs.

                        SURFnet has undertaken a pilot project, called SURFnet
                        3, which uses 2 megabits per second leased lines to
                        link the major Dutch universities, the national
                        aerospace laboratory, and other academic computing
                        services to the national supercomputer center.
                        SURFnet's managing director stated that 2 megabits per
                        second links were chosen as the upper limit for the
                        pilot project solely on financial grounds, and that
                        higher speeds would have been used had they been
                        affordable.  After 1992, the SURFnet 3 pilot is
                        expected to evolve into an operational network
                        offering both X.25 and Internet Protocols.

 _____________________________________________________________________________
 The United Kingdom's   The United Kingdom's national research network, called
 National Research      the Joint Academic Network (JANET), was launched in
 Network                1984 as a government and industry initiative to more
                        efficiently use computer resources.  JANET
                        consolidated diverse regional and national networks,
                        operating at approximately 48 kilobits per second,
                        among universities and research institutions.  JANET
                        connects public institutions, including universities,
                        government research labs, and private research
                        facilities.  The network is managed by the Joint

                        ______________________________________________________
                             16  The ECU is a composite currency unit based on
                        the currencies of 9 of the 12 European Community
                        members.  In June 1991, an ECU equaled approximately
                        $1.16.

                        Page 22            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        Network Team, a centralized group that operates under
                        the Department of Education and Science's Computer
                        Board for Universities and Research.

                        Since 1989, the national network backbone has been
                        based on the X.25 protocol running over 2 megabits per
                        second trunk circuits leased from British public
                        service companies.  The Computer Board has promulgated
                        a policy for the network to use international
                        standard protocols.  Therefore, the Joint Network Team
                        requires network users to use prescribed protocols to
                        enhance the network's interworking capabilities.

                        JANET is funded by a number of governmental
                        organizations under the Department of Education and
                        Science.  The 1991 budget for JANET's recurring
                        expenses is 3.9 million pounds sterling.#17  An
                        additional 4.1 million pounds sterling are budgeted
                        for capital expenditures over a 2-year period during
                        1991 and 1992.

                        In 1989, the United Kingdom began a major performance
                        enhancement to upgrade JANET's access speed.  This
                        enhancement involves implementing 2 megabits per
                        second site access lines supported by a trunk network
                        composed of multiple 2 megabits per second lines.
                        The long-term strategy is to create a SuperJANET
                        broadband network employing optical fibers to
                        complement the introduction of fiber-based local area
                        networks.  This network upgrade is scheduled to be
                        completed by 1994.

 _____________________________________________________________________________
 France Planning to     Currently, France does not have an integrated national
 Implement a            research and education network; rather, various
 National Network       general-purpose and specific disciplinary networks
                        have been developed to support the needs of French
                        government agencies and other users.  The French
                        government does plan, however, to begin implementing a
                        national research and education network by the end of
                        1991.  Toward this goal, three French ministries#18
                        have established a partnership to build a national
                        high-speed network that will link the entire French
                        research and education community, and be available to

                        ______________________________________________________
                             17  In June 1991, a pound sterling equaled about
                        $1.66.

                             18  The three French ministries involved in this
                        effort are the Ministry of Posts, Telecommunications,
                        and Space; the Ministry of Research and Technology;
                        and the Ministry of National Education.

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                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        industrial research and development centers.  The
                        intent in establishing this network is to pull
                        together the fragmented French networks in a more
                        cost-effective manner.

                        French officials told us that decisions regarding the
                        network have not been finalized, although implementing
                        a network that can be upgraded to speeds of hundreds
                        of megabits per second will be a primary
                        consideration.  The officials estimated that the
                        network will offer trunk line transmission speeds
                        beginning at 2 megabits per second and, soon
                        thereafter, increasing to 34 megabits per second.  In
                        addition, the new network will accommodate multiple
                        protocols to meet various users' needs.  Funding for
                        this network will be provided by the three ministries,
                        regional authorities, and network users.

 #####################________________________________________________________
 PAN-EUROPEAN NETWORKS  Cross-border communications between European countries
 MEET THE NEEDS OF      are handled by various pan-European networks.
 SPECIFIC GROUPS        Generally, these networks are geared to the needs of
                        specific groups and operate at lower speeds of 4.8 to
                        64 kilobits per second.  None of these networks serves
                        as a general-purpose backbone to interconnect the
                        existing national networks.

 _____________________________________________________________________________
 High Energy Physics    The High Energy Physics Network (HEPnet) is the
 Network                largest and fastest pan-European network currently
                        available.  HEPnet connects European high-energy
                        physics laboratories through the Centre Europeenne
                        pour la Recherche Nucl aire (CERN) in Geneva.  HEPnet
                        is managed by the HEPnet Technical Committee, which is
                        composed of representatives from each participating
                        country.

                        Although HEPnet's main focus is on meeting the needs
                        of the high-energy physics community, some of its
                        lines and funding are shared with other pan-European
                        networks in order to lease higher-speed trunk lines.
                        HEPnet's line speeds range from 4.8 kilobits per
                        second to 2 megabits per second, with most of the
                        lines operating below 512 kilobits per second.  HEPnet
                        supports the Internet Protocol, IBM's Systems Network
                        Architecture, X.25, and DECNET protocols by using
                        time-division multiplexers.

 _____________________________________________________________________________
 European Academic      The European Academic Research Network (EARN) is a
 Research Network       cooperative network started in 1984 with funding from
                        IBM.  EARN is the European portion of the worldwide
                        BITnet (Because It's Time Network), which covers North

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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        America, Europe, and parts of Africa, Asia, the Middle
                        East, and South America.  EARN, along with BITnet,
                        connects over 2,000 host computers worldwide, offering
                        mail, mailing list, and file transfer services.  Each
                        European country participating as an EARN member
                        provides a line to one other European country and also
                        pays dues to cover network management costs and the
                        trans-Atlantic link to the United States.  Most EARN
                        links operate at speeds of 9.6 kilobits per second or
                        less.  EARN is based on the IBM Network Job Entry
                        protocols.

 _____________________________________________________________________________
 European UNIX          The European UNIX Network is a cooperative research
 Network                and development network for users of the Unix
                        operating system developed by AT&T Bell Laboratories.
                        This user-funded network extends throughout western
                        Europe and is used by both academia and industry.  The
                        network operates primarily on 64 kilobits per second
                        leased lines using the Internet Protocol.  According
                        to a network official, UNIX line speeds may be
                        upgraded several times beyond 64 kilobits per second
                        in the near future, and then to 2 megabits per second
                        by 1994 if funding is available.

 _____________________________________________________________________________
 International X.25     The International X.25 Infrastructure (IXI) network is
 Infrastructure         a 64 kilobits per second, pan-European backbone pilot
 Network                network, which is being developed as part of the
                        COSINE (Cooperation of Open Systems Interconnection
                        Networking in Europe) project.#19  IXI links national
                        research networks, public networks, and international
                        networks, such as HEPnet and EARN.  IXI service is
                        implemented by the Netherlands' PTT, under contract
                        with the Commission of the European Communities, and
                        is currently paid for entirely by the COSINE project.
                        However, after the COSINE project is completed in
                        1992, user charges will be phased in, resulting in a
                        self-supporting network.  The IXI manager hopes to
                        upgrade line speed to 2 megabits per second in late
                        1991, when the network's pilot phase is projected to
                        end and production service begins.  The COSINE Policy

                        ______________________________________________________
                             19  COSINE is a project of EUREKA, an advanced
                        research program of the European Economic Community
                        and European Free Trade Association countries to raise
                        the productivity and competitiveness of Europe in the
                        fields of advanced technology.  COSINE's main
                        objective is to create a common Open Systems
                        Interconnection networking infrastructure to serve the
                        European academic, governmental, and industrial
                        research communities.

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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        Group estimates that 23 to 36 million ECUs will be
                        budgeted for the 3-year COSINE implementation phase,
                        which extends from 1990 through 1992.  The IXI budget
                        is estimated to be 10 to 15 million ECUs.

 _____________________________________________________________________________
 European Academic      The European Academic Supercomputer Initiative Network
 Supercomputer          (EASInet) is funded by IBM and links 18 sites
 Initiative Network     operating IBM supercomputers that were purchased as a
                        part of this initiative.  EASInet also shares many of
                        its lines with other pan-European networks to support
                        the development of an improved European networking
                        infrastructure.  EASInet links operate at 64 kilobits
                        per second or higher when the lines are shared with
                        other networks such as HEPnet.  The network supports
                        multiple protocols, including X.25, Internet Protocol,
                        and Systems Network Architecture.  IBM is committed to
                        funding the network through 1992.


 #####################________________________________________________________
 NEED FOR AN IMPROVED   Currently, the major participants in European research
 HIGH-SPEED PAN-        and education networking, as well as officials of
 EUROPEAN RESEARCH      national governments and the Commission of the
 AND EDUCATION          European Communities, agree on the need for a pan-
 BACKBONE NETWORK       European research and education backbone network.
                        Some of the participants believe that a high-speed
                        network similar to the United States' proposed
                        National Research and Education Network should be
                        developed in Europe.  Network operators and users and
                        officials of the Reseaux Associes pour la Recherche
                        Europeenne (RARE), an association of networking
                        organizations and users in Europe, told us that at a
                        minimum, a 2 megabits per second pan-European network
                        capable of supporting multiple protocols is needed as
                        soon as possible.#20  They stated that such a network
                        would likely be used to capacity by supporting only
                        current applications, and that higher speeds will be
                        needed for newer applications, such as interactive use
                        of supercomputer-based modeling and visualization
                        systems or multimedia conferencing.  Most of these
                        officials also believe that any pan-European network

                        ______________________________________________________
                             20  RARE, which aims to cooperatively develop a
                        harmonized communications infrastructure, consists of
                        over 24 national network members and 8 international
                        members.  In addition, the Commission of the European
                        Communities participates actively in RARE's work in
                        view of the Commission's special responsibilities
                        regarding information technology and the research
                        infrastructure in Europe.


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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        should quickly progress to speeds of 34 megabits per
                        second.#21

                        In discussing the need for a high-speed, pan-European
                        network, some networking experts believed that the
                        requirements for a wide-area network, such as the pan-
                        European network, are driven largely by the
                        capabilities of local-area networks.  Currently, most
                        local-area networks in Europe operate at speeds
                        ranging from 10 to 30 megabits per second, with an
                        increasing number of 100 megabits per second networks
                        being implemented.  As users become accustomed to the
                        speed and services available on the local-area
                        networks, they begin to want similar speed and
                        services from wide-area networks.

                        Network operators and users also explained that, while
                        national networks are progressing, a Europe-wide
                        backbone infrastructure connecting existing national
                        networks is needed to allow effective collaboration
                        among European researchers.  Without such a network,
                        the network operators and users believe it will be
                        impossible to bring together the needed expertise and
                        resources from across Europe to meet large-scale
                        technical challenges.

                        An official of the Commission of the European
                        Communities stated that a high-speed, state-of-the-
                        art, pan-European research and education network will
                        be needed to support their Networks of Excellence
                        program.  This program is intended to bring together
                        European research efforts in key areas of information
                        technology.  Whereas present research efforts are
                        often spread among various national facilities and
                        programs, the Networks of Excellence program creates
                        the organizational structure to link top-level
                        European researchers in related interdisciplinary
                        fields.#22  At the time of our review, three pilot
                        Networks of Excellence had been established to address
                        the subject areas of Speech and Natural Language,
                        Distributed Computing Systems Architecture, and
                        Computational Logic.  Although these Networks of
                        Excellence rely on access to the national or

                        ______________________________________________________
                             21  Although the IXI pilot network provides a
                        backbone service, it operates at only 64 kilobits per
                        second and may not be able to operate at speeds higher
                        than 2 megabits per second.

                             22  The scope of the Networks of Excellence
                        program does not include providing a
                        telecommunications network.

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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        international networks described earlier, a high-
                        speed, pan-European telecommunications infrastructure
                        is needed to allow the Networks of Excellence concept
                        to reach its potential.

                        Officials of the Commission of the European
                        Communities also stated that a pan-European research
                        and education network is needed to help lessen the
                        economic disparity between northern and southern
                        Europe.  The officials foresee that, without a pan-
                        European infrastructure, southern European nations
                        could fall further behind because they lack the
                        capital to invest in an infrastructure to support
                        research and education.  According to one official, a
                        pan-European network could give southern European
                        research and education communities access to the
                        expertise and resources of northern Europe.

 _____________________________________________________________________________
 Efforts to Establish   Representatives of European networking organizations
 a Pan-European         and the Commission of the European Communities told
 Backbone Network       us that recent progress toward implementing a pan-
                        European network has been good.  Moreover, they were
                        optimistic that organizational and funding problems
                        will be resolved, resulting in implementation of a
                        pan-European backbone network in the near future.
                        Several officials noted that a higher-speed network
                        could be offered by the mid-1990s.

                        RARE has been an active proponent of high-speed
                        networking in Europe.  In February 1989 and in January
                        1991, RARE sponsored networking symposiums to
                        highlight user needs for high-speed communications.
                        In May 1989, RARE's Working Group 6, which deals with
                        medium- and high-speed communications, proposed
                        initiating a high-speed, pan-European network.  While
                        these efforts did not result in a high-speed, pan-
                        European backbone network, or even a firm plan for
                        implementing one, they have resulted in a general
                        agreement that such a network is needed and that
                        impending organizational and funding obstacles must be
                        addressed.

                        In March 1991, an official of the Dutch government
                        organized the European Consultative Forum on Research
                        Networking, which brought together the key players
                        from the political and networking communities to
                        discuss development of a high-speed, pan-European
                        backbone network.  Forum participants agreed that
                        organizational and funding issues must be resolved so
                        that new high-speed communications services can be
                        developed.


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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        In May 1991, the European Engineering Planning Group
                        (EEPG), composed of network experts organized by RARE,
                        and chartered to undertake specific activities aimed
                        at establishing a high-speed, pan-European backbone
                        network, proposed an organizational structure for
                        operating such a network and raising funds.  EEPG
                        also proposed alternative technical approaches for
                        implementing a pan-European backbone network.

                        Also in May 1991, at the Second Joint European
                        Networking Conference sponsored by RARE, EEPG's
                        proposals were presented to an international audience.
                        Additionally, the president of RARE presented a
                        description of the political actions, the
                        organizational structures, the technical tasks, and
                        other steps needed to implement a high-speed, pan-
                        European backbone network.  Officials representing the
                        Commission of the European Communities stressed the
                        need for such a network and their willingness to
                        assist in its implementation.

 _____________________________________________________________________________
 The Technology         European officials stated that much of the technology
 Needed for High-       needed to improve national networks and create a
 Speed Networks Is      high-speed, pan-European network already exists.  In
 Being Developed        addition, efforts are under way to develop more
 in Europe              advanced technology to implement even higher-speed
                        research and education networks.  For example,
                        Germany's University of Stuttgart Computing Center, a
                        large supercomputing facility, has conducted high-
                        speed trials using the Forerunner Broadband Network
                        service.  This service is offered by Germany's PTT to
                        about 250 users and provides video conferencing and
                        data transfer at 140 megabits per second.  The
                        Stuttgart Computing Center has successfully operated
                        long-distance links using 100 megabits per second of
                        this capacity.  An official of the Center told us that
                        a high-speed, pan-European backbone network is
                        technically possible by 1992.

                        Another effort based in Germany is the BERKOM project,
                        which is intended to stimulate the development of
                        high-speed communication services, end systems, and
                        applications.  The project is being undertaken by the
                        German PTT and includes the participation of over 70
                        organizations, such as equipment suppliers, research
                        institutes, and commercial users of high-speed
                        communications.  At the time of our review, the
                        project had resulted in the installation of 30,000
                        kilometers of fiber-optic cables and  switching
                        equipment near Berlin, yielding a network that
                        provides access speeds ranging from 64 kilobits per
                        second to 140 megabits per second.  A BERKOM official

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 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        told us that pan-European research and education
                        networks with operational speeds exceeding 100
                        megabits per second will soon be technically feasible,
                        and that speeds approaching a gigabit per second will
                        be needed in the foreseeable future.

                        Another initiative to stimulate development of
                        communication technology is the Research and
                        Development in Advanced Communications Technologies in
                        Europe (RACE) program, sponsored by the Commission of
                        the European Communities.  This program is meant to
                        facilitate the introduction of commercial Integrated
                        Broadband Communication (IBC) services in Europe by
                        1995 by funding research in pre-competitive
                        technology.#23  IBC services being developed could be
                        used to support a pan-European research and education
                        network, as well as meet the needs of industrial
                        users.  RACE, which is now entering its second phase,
                        has 85 ongoing projects involving 300 participating
                        organizations and 2,000 people.  Funding for phases I
                        and II is provided by the Commission of the European
                        Communities and RACE participants.  Phase I was
                        budgeted at 1.1 billion ECUs for 1987 through 1991.
                        Phase II, which partially overlaps phase I, is
                        scheduled to run from 1990 through 1994, and is
                        budgeted at 1 billion ECUs.

 #####################________________________________________________________
 ORGANIZATION AND       Although much of the technology required to create a
 FUNDING ISSUES MUST    pan-European research and education backbone network
 BE RESOLVED TO         is thought to be available, European officials told
 IMPLEMENT A PAN-       us that Europe faces significant issues in managing
 EUROPEAN BACKBONE      and funding such a network.  European officials were
 NETWORK                generally optimistic that these issues will be
                        resolved, and that a high-speed, pan-European backbone
                        network will be implemented.

                        Many organizations in Europe actively support computer
                        networking for European research and education
                        communities.  However, none has the charter to provide
                        a pan-European backbone infrastructure to link
                        national networks supporting multiple disciplines and

                        ______________________________________________________
                             23  Integrated Broadband Communication is the use
                        of wide-area, high-capacity networks to simultaneously
                        provide a variety of communication services such as
                        voice, data transmission, and image transfer.  RACE
                        officials told us that these types of services should
                        be generally available by the mid-1990s and would be
                        very useful to research and education networks, even
                        though development of such networks is not an explicit
                        objective of the RACE program.

                        Page 30            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix II
                        High-Speed Computer Networks Supporting
                        Research and Education in Europe

 _____________________________________________________________________________
                        needs.  The lack of central leadership has led to
                        unsatisfactory cross-border networking services in
                        Europe.  In May 1991, a group of networking experts
                        reported that while Europe does not lack the
                        technology, skills, and competence to implement a
                        high-speed, pan-European network, a cohesive, central
                        organizational force and a supportive regulatory
                        environment are missing.#24  An official of the
                        Commission of the European Communities told us that
                        progress has been slow because consensus among the
                        large number of countries and organizations involved
                        is not easily achieved.  Organizing the development of
                        a pan-European network could potentially include the
                        12 European Community countries, 6 European Free Trade
                        Area countries, and Poland, Hungary, and
                        Czechoslovakia.

                        Most of the officials also told us that it is
                        difficult and expensive to obtain cross-border
                        telecommunications services because there is no pan-
                        European service provider.  Rather, service is
                        provided by national PTTs, which generally operate as
                        regulated monopolies within their respective
                        countries.  Therefore, instead of working with a
                        single provider, network operators must coordinate
                        with multiple PTTs to obtain a line from one country
                        to another.  For example, if a network operator wants
                        to obtain a link between the Netherlands and France,
                        it must coordinate with officials of the intervening
                        nation--in this case, the Belgian PTT--as well as with
                        the PTTs of France and the Netherlands.  Network
                        operators told us that obtaining cross-border lines is
                        time-consuming and expensive.  While
                        telecommunications costs are different in each
                        country, many European tariffs are reported to be 10
                        times higher than in the United States.  The PTTs have
                        implemented some changes to simplify matters; however,
                        network operators stated that the situation is still
                        far from satisfactory.

                        Pan-European networking is further complicated by the
                        use of different telecommunications protocols among
                        users and networks.  Some European countries, as well
                        as the Commission of the European Communities,
                        actively encourage the use of protocols that comply
                        with the Open Systems Interconnection model, such as
                        X.25, to avoid reliance on vendor-specific network
                        solutions.  However, for various reasons, many
                        researchers often use other protocols that do not
                        comply with the model.

                        ______________________________________________________
                             24  European Engineering Planning Group, Final
                        Report, (May 2, 1991).

                        Page 31            GAO/IMTEC-91-69 High-Speed Networks

 Appendix III
 _____________________________________________________________________________
 HIGH-SPEED COMPUTER NETWORKS SUPPORTING
 RESEARCH AND EDUCATION IN JAPAN

 _____________________________________________________________________________
                        In Japan, government-funded and private networks
                        provide support for the major research and academic
                        institutions.  However, some Japanese officials
                        believe that Japan's networks, overall, are less
                        advanced than networks in the United States.  Japanese
                        officials told us that high-speed networks are an
                        integral part of ongoing plans and initiatives to
                        further the nation's telecommunications capability.
                        For example, plans are being formulated to develop a
                        fiber-optic digital network capable of transmitting
                        digitized voice, data, and video traffic, and
                        providing a standard way to share information at high
                        speeds.  However, some Japanese officials believe that
                        successful expansion of Japan's computer network
                        infrastructure may depend on whether adequate funding
                        and government coordination exists to support these
                        plans and initiatives.

 #####################________________________________________________________
 JAPANESE RESEARCH AND  Japanese research and education networks provide
 EDUCATION NETWORKS     nationwide connectivity to academic researchers at
 PROVIDE RELATIVELY     universities throughout Japan, and to other
 LOW-SPEED CAPABILITY   specialized groups of users, such as those serving
                        the high-energy physics community.  Most of these
                        networks transmit data at relatively low speeds of 192
                        kilobits per second or less.  Only one of the networks
                        that we observed provided high-speed data transmission
                        at a speed of 1.5 megabits per second.  According to
                        some Japanese officials, high-speed research and
                        education networks in Japan may not be as widespread
                        or advanced as United States networks because Japanese
                        researchers tend to be located closer together and
                        concentrated in fewer organizations.

 _____________________________________________________________________________
 Science Information    The Science Information Network is the only high-speed
 Network                network that we identified in Japan.#25  The network








                        ______________________________________________________
                             25  Although the Science Information Network was
                        the only high-speed network that we identified,
                        Japanese officials told us that high-speed links have
                        been created by some private companies, such as Honda
                        Motor Co., Ltd.  We also were informed that an
                        extensive local-area network connecting nine
                        government laboratories and a supercomputer center
                        over high-speed links exists in Tsukuba Science City.

                        Page 32            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
                        was created in 1987 by the National Center for Science
                        Information System (NACSIS), an inter-university
                        research institute authorized by the Japan National
                        University Chartering Law.  NACSIS created the network
                        to promote the exchange of scientific information
                        among researchers, primarily at universities, national
                        research institutes, and major libraries throughout
                        Japan.  The Science Information Network expanded the
                        services of one of Japan's earliest computer networks,
                        the N-1 Network, which began operation in 1981 to
                        facilitate the sharing of computer resources.  The
                        Science Information Network is funded by the
                        government, receiving approximately 400 million yen
                        annually for circuits and an unspecified amount for
                        maintenance fees from the Ministry of Education,
                        Science, and Culture.#26

                        According to NACSIS officials, the Science Information
                        Network has a 1.5 megabits per second (T1) backbone,
                        with trunk lines connecting to 40 nodes at speeds
                        ranging from 64 to 512 kilobits per second.  The
                        network supports various protocols, including X.25,
                        the Transmission Control Protocol/Internet Protocol
                        (TCP/IP), and certain proprietary protocols.

                        The Science Information Network provides services of
                        the N-1 network and also is used for library
                        information exchange, electronic mail, and
                        experimental projects.  The network directly links 135
                        universities, and provides packet-switching or dial-up
                        connections to an unspecified number of other
                        universities.  Among the members of this network are
                        the seven inter-university computing centers
                        throughout the main Japanese islands.  Since 1989, the
                        Science Information Network also has provided its
                        users with international connections to the National
                        Science Foundation in Washington, D.C., and since
                        1990, to the British Library in London.  In addition,
                        NACSIS encourages interconnections among local-area
                        networks on university campuses in order to promote
                        greater use of computers by a wider range of
                        researchers for more advanced applications.

                        NACSIS officials told us that they want to upgrade the
                        network to provide minimum trunk line speeds of 192
                        kilobits per second for all major locations, and to
                        offer new services, such as video conferencing.
                        Accomplishing these goals, however, will depend on
                        whether funding required to install new circuits can

                        ______________________________________________________
                             26  In June 1991, one dollar equaled
                        approximately 137.55 yen.

                        Page 33            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
                        be obtained from the Ministry of Education, Science,
                        and Culture.

 _____________________________________________________________________________
 Widely Integrated      The Widely Integrated Distributed Environment (WIDE)
 Distributed            Internet project was initiated in July 1987 by a
 Environment Internet   professor at the University of Tokyo.  The project
                        was designed to provide a testbed for the development
                        of large-scale distributed systems technologies, and
                        was initially constructed by interconnecting several
                        local-area networks.  The network has since provided a
                        basis for Japanese computer science researchers to
                        gain practical experience in advanced networking.  The
                        WIDE project also sponsors a consortium to study
                        various computer issues including computer security
                        and protocols and home computing.  The WIDE project
                        operates as a nongovernment network with funding
                        support from about 25 private companies.  According to
                        a WIDE project representative, the operating budget
                        for this network totals about 82.5 million yen
                        annually.

                        The WIDE Internet is composed of a variety of links,
                        including dial-up voice grade lines, voice grade
                        leased lines, 64 kilobits per second and 192 kilobits
                        per second digital leased lines, a 64 kilobits per
                        second link to the Science Information Network of
                        NACSIS, and an integrated services digital network.
                        Currently, 43 user organizations, including
                        universities and private companies, are connected to
                        five operation centers through lines operating at 9.6
                        to 192 kilobits per second.  The WIDE project
                        provides connectivity to other networks, such as the
                        University of Tokyo International Science Network, and
                        supports TCP/IP as the basic protocol.

                        WIDE operates in conjunction with the Pacific Area
                        Computer Communication (PACCOM) project to provide
                        international links for Japanese researchers.  PACCOM
                        began as a testbed project by the University of Hawaii
                        in June 1988.  PACCOM provides international
                        connections for some users in Japan to the United
                        States and several other countries by means of links
                        between two Japanese universities and PACCOM's
                        operation center at the University of Hawaii.
                        Connections between Japan and Hawaii are provided by
                        five 64 kilobits per second lines.

 _____________________________________________________________________________
 Japanese University    The Japanese University Network (JUNET) is an academic
 Network                network offering electronic mail and electronic news
                        services.  JUNET was begun in 1984 by university
                        students to provide a testing environment for computer

                        Page 34            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
                        network research, and promote information exchange
                        among Japanese and other researchers.  JUNET is the
                        largest nationwide, noncommercial computer network in
                        Japan.  As of March 1991, the network connected
                        approximately 450 universities and private companies
                        throughout Japan.  Two primary international gateways
                        also provide connections to Europe, the United States,
                        Australia, and Korea.  JUNET is not a high-speed
                        network; many of its links are 9.6 kilobits per
                        second.  The WIDE internet serves as a backbone link
                        for JUNET, using the X.25 protocol and leased lines
                        to process traffic.

                        JUNET is operated on a volunteer basis.  Within Japan,
                        each user organization is requested to fund and manage
                        links between its neighboring organizations.  In
                        addition, users are charged according to the service
                        they use on international links, which are expensive
                        to support.

 _____________________________________________________________________________
 High Energy Physics    The High Energy Physics Network-Japan (HEPNET-Japan)
 Network-Japan          is the Japanese portion of the international high-
                        energy physics network.  It was established in 1982 to
                        enable researchers to access computing power at the
                        National Laboratory for High Energy Physics (KEK),
                        which also operates the network.#27

                        Presently, HEPNET-Japan connects researchers at more
                        than 35 universities and other research facilities
                        throughout Japan.  The network uses leased lines and
                        private network services operating at 9.6 to 64
                        kilobits per second, and supports the TCP/IP and
                        DECnet protocols.  The network also provides
                        international connectivity to the Lawrence Berkeley
                        Laboratories in California by a 56 kilobits per second
                        line.  HEPNET-Japan provides various services,
                        including remote interactive computer access, data
                        transfer, and electronic mail, and supports other
                        uses, such as complex distributed computing
                        applications.

                        KEK officials stated that they plan to upgrade HEPNET-
                        Japan, and have requested funds to begin improving the
                        speed of the network.  As planned, the network will
                        operate six hub sites serving users in the surrounding
                        areas, and connect to KEK by means of 512 kilobits per

                        ______________________________________________________
                             27  KEK is a national laboratory for high-energy
                        physics research, which is funded by the Ministry of
                        Education, Science, and Culture.  The laboratory is
                        located in Tsukuba Science City, near Tokyo.

                        Page 35            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
                        second or higher-speed dedicated leased lines.
                        Funding for the upgrade, which is estimated to cost
                        about 100 million yen annually for leased lines, is
                        being requested in 1991 from the Ministry of
                        Education, Science, and Culture.  Additional upgrades
                        to increase the speed of the HEPNET-Japan backbone to
                        1.5 megabits per second (or higher speed) lines also
                        are planned, but funds have not yet been requested.

 _____________________________________________________________________________
 Japan Information      The Japan Information Center of Science and Technology
 Center of Science      (JICST) network provides users throughout Japan with
 and Technology         access to a multitude of bibliographic and factual
 Network                data bases to encourage scientific and technical
                        research.  Presently, JICST offers access to over 90
                        million citations on approximately 118 data bases,
                        including data bases that exist outside of Japan.  The
                        network is operated by JICST, a quasi-governmental
                        organization, which is financed by income from the
                        Science and Technology Agency of the Japanese
                        government and from service fees.  About half of
                        JICST's annual budget comes from the Agency and half
                        comes from service fees.

                        Over three-quarters of the JICST network users are
                        private companies; about one-fourth of the users are
                        universities, the Japanese government, or other
                        agencies.  These users gain access to JICST's data
                        bases on lines operating at between 300 and 2,400
                        bits per second, and connecting to 10 JICST branch
                        offices located throughout Japan.  The branch offices
                        also have connections to the online data bases over
                        lines operating at 14.4 to 64 kilobits per second.
                        JICST officials estimated that network use has almost
                        doubled over the past 5 years, with users currently
                        making more than 100,000 inquiries into the data bases
                        each month.  JICST officials want to provide upgraded
                        capability to improve online data base service and the
                        transfer of large data files.

 #####################________________________________________________________
 PLANS FOR FUTURE       According to some officials, high-speed networks are
 NETWORKS IN JAPAN      recognized in Japan as being important and valuable,
                        and efforts to enhance the speed and capability of the
                        existing computer networking infrastructure are
                        actively encouraged.  The officials stated that
                        Japanese ministries, as well as private sponsors, have
                        proposed projects or initiated studies aimed at
                        expanding Japan's networking capability to support
                        research and education.



                        Page 36            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
 _____________________________________________________________________________
 Plans to Build a       One of Japan's most significant initiatives is a plan
 Fiber-Optic            to develop a fiber-optic digital network that will
 Digital Network        provide service to all businesses and virtually all
                        homes in Japan by the year 2015.  This fiber-to-the-
                        home project will support a broadband Integrated
                        Services Digital Network (ISDN) that Japan's largest
                        telephone company, Nippon Telegraph and Telephone
                        Corporation (NTT), plans to build at an estimated cost
                        of 34 to 40 trillion yen (approximately $250 billion)
                        over 25 years.  NTT receives guidance and supervision
                        from Japan's Ministry of Posts and Telecommunications,
                        which is responsible for regulating the
                        telecommunications industry.

                        As part of the project, fiber-optic cable will be used
                        to transmit digitized voice, data, and video traffic
                        through a single line.  NTT's goal is to provide
                        services such as portable "pocket phones,"
                        communication of characters and images ("textmail")
                        between any computer on any computer network, and a
                        "visual phone" with picture quality comparable to that
                        of television.  NTT also envisions other advanced
                        services such as 3-D video communications and
                        automatic translation communications.

                        According to an NTT representative, certain factors
                        may affect the timing and extent of the project's
                        development.  For example, NTT plans to fund the
                        fiber-to-the-home project with corporate investment
                        funds generated from operating revenues, rather than
                        from direct Japanese government general funds.  In the
                        future, NTT also could receive some tax incentives.
                        However, according to NTT's 1990 Annual Report, a
                        large part of the corporation's stock is government-
                        owned. Upon incorporation on April 1, 1985, all the
                        assets and liabilities of NTT's predecessor, the
                        Nippon Telegraph & Telephone Public Corporation, were
                        transferred to the Japanese government.  Since that
                        time, the Japanese government has sold about one-third
                        of these shares to the public.  Eventually, the
                        Japanese government could reduce its share of the
                        remaining stock ownership by another one-third, in
                        accordance with the relevant Japanese law.

                        Moreover, if the fiber-optic cable is to be funded out
                        of NTT's operating revenues, the plan may proceed only
                        to the extent that consumers will pay for the
                        services.  However, according to the NTT
                        representative, possibly the least developed part of
                        the project plan is the extent to which actual
                        customer needs have been defined.  In addition, at
                        least one important regulatory issue needs to be
                        clarified before NTT will implement its fiber-to-the-

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 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________
                        home plan.  The NTT representative explained that a
                        current law may prohibit NTT from obtaining a license
                        to provide home cable television services.  If this is
                        determined to be the case, the law will have to be
                        changed, or NTT will have to reevaluate further
                        investment in the network.

                        A possible reorganization of the telephone industry in
                        Japan also may affect NTT's plan.  A Japanese
                        government report in 1990 proposed dividing up NTT
                        into smaller organizations, but no action was taken at
                        that time.  However, this issue may be reevaluated in
                        1995.  The impact of this regulatory decision on NTT's
                        plans is uncertain.

 _____________________________________________________________________________
 Initiatives Being      At the time of our review, representatives of the
 Studied to Enhance     Ministry of International Trade and Industry (MITI)
 Japan's Network        told us that they were studying initiatives that
 Capabilities           could result in expanding the capability of Japanese
                        research and education networks.  These initiatives
                        are intended to strengthen the infrastructure for
                        research, expand knowledge in computer technology, and
                        further international scientific cooperation.

                        As one initiative, MITI is considering whether to
                        provide further funding to improve networks linking
                        Japan's supercomputer centers.  MITI officials
                        explained that although the number of supercomputers
                        is increasing in Japan, the linkages between
                        supercomputer centers is limited.  Moreover,
                        researchers' access to these centers depends on how
                        the centers are funded.  MITI officials stated that
                        currently, supercomputer centers are either (1) funded
                        by the Ministry of Education, Science, and Culture and
                        are limited to users at major universities, (2) funded
                        by MITI for use by researchers at various national
                        laboratories, or (3) privately funded for commercial
                        business purposes.  Under the initiative that MITI is
                        considering, researchers would be allowed to access
                        supercomputer centers regardless of the source of
                        their funding.  Although MITI recognizes that there is
                        a need for faster networks, the officials knew of no
                        Japanese government initiative to study computer
                        networks faster than 1.5 megabits per second.

                        MITI officials told us that government funding has not
                        yet been approved for this initiative.  MITI
                        representatives estimated that if approved, the first-
                        year budget for this initiative will be about 600
                        million yen, which may include contributions from
                        Japanese companies.  MITI plans to have more
                        discussions and request comments from interested
                        parties on this matter.

                        Page 38            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix III
                        High-Speed Computer Networks Supporting
                        Research and Education in Japan

 _____________________________________________________________________________

 #####################________________________________________________________
 ISSUES AFFECTING       Representatives of various Japanese organizations told
 JAPAN'S FUTURE         us that further development of computer networks to
 DEVELOPMENT OF         support research and education activities depends on
 COMPUTER NETWORKS      how Japan responds to issues concerning its budget
                        environment, coordination among Japanese government
                        ministries, and a shrinking labor force.

                        Operators of existing networks and representatives of
                        Japanese ministries told us that expanding the number
                        and capability of research and education computer
                        networks will require successfully competing with
                        other high-priority programs for government funds.
                        According to a United States Embassy official in
                        Tokyo, some Japanese officials perceive that higher
                        education, including academic research, has not been a
                        top priority, and therefore, is not well-funded by the
                        government.  Moreover, planning, building, and
                        operating future networks may require funding and
                        support from several government ministries, such as
                        MITI and the Ministry of Education, Science, and
                        Culture, rather than from only one organization, as
                        was previously done.  This would require, in the
                        opinion of various ministry representatives, more
                        government coordination than now exists.

                        Another issue which may affect increased networking,
                        and in particular the broadband ISDN project, is a
                        forecasted shortage of workers to install the fiber-
                        optic cables and other telecommunications equipment.
                        According to United States Embassy officials in Tokyo,
                        a declining birth rate trend threatens to shrink
                        Japan's population, and consequently, the size of its
                        labor force.  An NTT representative added that finding
                        sufficient numbers of workers also is difficult
                        because many of the younger Japanese workers consider
                        certain construction work, such as installing fiber-
                        optic cables, to be dirty, difficult, and generally
                        undesirable.














                        Page 39            GAO/IMTEC-91-69 High-Speed Networks

 Appendix IV
 _____________________________________________________________________________
 OBJECTIVES, SCOPE, AND METHODOLOGY

 _____________________________________________________________________________
                        At the request of the Senate Subcommittee on Science,
                        Technology, and Space; Senate Committee on Commerce,
                        Science, and Transportation; House Subcommittee on
                        Technology and Competitiveness; and House Committee on
                        Science, Space, and Technology, we studied the
                        development of high-speed computer networks in the
                        United States, Europe, and Japan.  Because high-
                        speed computer networks used for research and
                        education are of primary interest in the United
                        States, we specifically focused on networks that are
                        used to facilitate these types of applications.

                        In conducting our review, we interviewed officials of
                        various United States government agencies, including
                        the National Science Foundation, the Defense Advanced
                        Research Projects Agency, the National Aeronautics and
                        Space Administration, and the Department of Commerce.
                        In addition, we met with representatives of other
                        organizations and agencies, such as the Corporation
                        for National Research Initiatives, the Federal
                        Networking Council, and EDUCOM, a nonprofit consortium
                        of higher education institutions which facilitates the
                        use and management of information resources in
                        teaching, learning, and research.

                        To determine which European and Japanese networks to
                        include in our review, we obtained and analyzed
                        various documents describing each nation's network
                        infrastructures, policies, and initiatives.  We
                        attended networking symposiums held in the United
                        States and Europe during the time of our review; and
                        consulted with numerous government and academic
                        officials who were considered experts on European and
                        Japanese computer and communication technologies, and
                        officials of the United States Mission to the European
                        Community and the United States Embassy in Tokyo.

                        On the basis of information obtained from these
                        sources, we limited our review to those networks
                        identified as providing high-speed communication
                        capabilities, or if low-speed, as being important to
                        European and Japanese research and education.
                        Although high-speed is not formally or universally
                        defined, various officials and symposium participants
                        considered high-speed networks to be capable of
                        operating at T1 speeds of 1.544 megabits per second in
                        the United States and Japan, or E1 speeds of 2.048
                        megabits per second in Europe.  We excluded from our
                        review networks that were operated on a private, for-







                        Page 40            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix IV
                        Objectives, Scope, and Methodology

 _____________________________________________________________________________
                        profit basis.  In addition, because of the size of the
                        European Community, we limited our review to national
                        research and education networks in five countries--
                        France, Germany, Italy, the Netherlands, and the
                        United Kingdom--and five principal pan-European
                        networks.

                        In the European countries and Japan, we interviewed
                        government personnel, representatives of organizations
                        responsible for research and development, members of
                        the academic community, managers of key projects for
                        enhancing the network infrastructure, and
                        telecommunications industry officials.  From these
                        sources, we obtained information describing the
                        present networking infrastructures, plans to upgrade
                        or develop future infrastructures, and to the extent
                        possible, the resources being applied to these
                        efforts.  We also obtained information regarding the
                        challenges or concerns that Europe and Japan believe
                        must be addressed before future plans can be fully
                        realized.

                        To confirm our understanding of network development,
                        we discussed the information in this report with
                        various government officials and representatives of
                        network organizations in the United States, Europe,
                        and Japan, and have incorporated their views as
                        appropriate.  However, we did not independently verify
                        the validity or accuracy of the information provided.
                        Our work was conducted from October 1990 to June 1991,
                        primarily in Washington, D.C., and the European and
                        Japanese locations listed in appendixes V and VI,
                        respectively.






















                        Page 41            GAO/IMTEC-91-69 High-Speed Networks

 Appendix V
 _____________________________________________________________________________
 ORGANIZATIONS AND ENTITIES CONTACTED REGARDING
 EUROPEAN NETWORKS


 #####################________________________________________________________
 EUROPEAN COUNTRIES

 _____________________________________________________________________________
 France                 Government Organizations
                          Ministry of Research and Technology
                          National Center for Scientific Research

                        Network Operators and Users
                          National Aerospace Research Center
                          National Research Institute for Computer
                            Science and Automation

                        Postal, Telegraph, and Telephone Administration
                          France Telecom

 _____________________________________________________________________________
 Germany                Government Organization
                          Ministry for Research and Technology

                        Network Operators and Users
                          Deutsche Forschungsnetz (National Research Network
                            Center)
                          The German National Research Center for Computer
                            Science

                        Postal, Telegraph, and Telephone Administration
                          Deutsche Bundespost

 _____________________________________________________________________________
 Italy                  Government Organization
                          Ministry of Universities and Scientific Research

                        Network Operators and Users
                          Group for the Harmonization of Research Networks
                          National Institute of Nuclear Physics

                        Postal Telephone and Telegraph Administration
                          ItalCable (Italian International Telephone Agency)
                          Italian Public Agency for Telephones

 _____________________________________________________________________________
 The Netherlands        Government Organizations
                          Ministry of Education

                        Network Operators and Users
                          SURFnet B.V.








                        Page 42            GAO/IMTEC-91-69 High-Speed Networks

 _____________________________________________________________________________
                        Appendix V
                        Organizations and Entities Contacted
                        Regarding European Networks

 _____________________________________________________________________________


 #####################________________________________________________________
 PAN-EUROPEAN           Government Organizations
 REPRESENTATIVES          Commission of the European Communities,
                            Directorate-General for Telecommunications
                          European Strategic Program for Research and
                            Development in Information Technology (Esprit)
                          Research and Development in Advanced Communications
                            Technologies in Europe (RACE) Program

                        Networking Organizations
                          Association of Internet Protocol Users in Europe
                            (RIPE)
                          Reseaux Associes pour la Recherche Europeenne
                            (RARE)

                        Network Operators
                          European Academic Research Network
                          European UNIX Network
                          International X.25 Infrastructure Network


































                        Page 43            GAO/IMTEC-91-69 High-Speed Networks

 Appendix VI
 _____________________________________________________________________________
 ORGANIZATIONS AND ENTITIES CONTACTED REGARDING
 JAPANESE NETWORKS

 _____________________________________________________________________________
 Japanese Ministries
 and Government
 Organizations
                        Ministry of Education, Science, and Culture
                        Ministry of Foreign Affairs
                        Ministry of International Trade and Industry
                        Ministry of Posts and Telecommunications
                        National Institute of Science and Technology
                          Policy

 _____________________________________________________________________________
 Japanese Network       Electrotechnical Laboratory
 Operators and Users    Japan Information Center of Science and Technology
                        National Center for Science Information System
                        National Laboratory for High Energy Physics
                        Research Information Processing System
                        University of Tokyo Computer Center
                        Widely Integrated Distributed Environment Internet

 _____________________________________________________________________________
 Japanese Industry      Institute for New Generation Computer Technology
 and Other              Kawasaki Steel Systems R&D Corporation
 Organizations          NEC Corporation
                        Nippon Telegraph and Telephone Corporation
                        Sony Corporation

 _____________________________________________________________________________
 United States          Department of Defense, Office of Naval Research
 Government               Asian Office (Tokyo)
                        United States Embassy, Tokyo

 _____________________________________________________________________________
 United States          American Chamber of Commerce (High Technology
 Industry and Other       Committee), Japan
 Organizations          International Business Machines (IBM) World Trade Asia
                          Corporation, IBM Asia Pacific
                        Pacific Area Computer Communication Testbed
                        (University of Hawaii)

















                        Page 44            GAO/IMTEC-91-69 High-Speed Networks

 Appendix VII
 _____________________________________________________________________________
 MAJOR CONTRIBUTORS TO THIS REPORT


 #####################________________________________________________________
 INFORMATION            Linda D. Koontz, Assistant Director
 MANAGEMENT AND         Valerie C. Melvin, Senior Evaluator-in-Charge
 TECHNOLOGY DIVISION,   Yvette Ramos, Computer Scientist
 WASHINGTON, D.C.

 #####################________________________________________________________
 LOS ANGELES REGIONAL   Allan Roberts, Assistant Director
 OFFICE                 Ambrose A. McGraw, Senior Evaluator

 #####################________________________________________________________
 EUROPEAN OFFICE        Danny R. Burton, Assignment Manager
                        Paul D. Alcocer, Senior Evaluator
                        Kirk R. Boyer, Evaluator










































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