Network Working Group                                            G. Cook
Request for Comments: 1527                                   Cook Report
Category: Informational                                   September 1993


        What Should We Plan Given the Dilemma of the Network?

Status of this Memo

  This memo provides information for the Internet community.  It does
  not specify an Internet standard.  Distribution of this memo is
  unlimited.

Abstract

  Early last year, as the concluding effort of an 18 month appointment
  at the US Congress Office of Technology Assessment (OTA), I drafted a
  potential policy framework for Congressional action on the National
  Research and Education Network (NREN).

  The Internet community needs to be asking what the most important
  policy issues facing the network are.  And given agreement on any
  particular set of policy issues, the next thing we should be asking
  is, what would be some of the political choices that would follow for
  Congress to make?

  It is unfortunate that this was never officially done for or by the
  Congress by OTA.  What we have as a result is network policy making
  being carried out now by the Science Subcommittee on the House side
  in consultation with a relatively small group of interested parties.
  The debate seems to be more focused on preserving turf than on any
  sweeping understanding of what the legislation is doing.  That is
  unfortunate.

  In the hope that it may contain some useful ideas, I offer a
  shortened version of the suggested policy draft as information for
  the Internet community.

Table of Contents

  The Dilemma of an Unregulated Public Resource in a Free Market
  Environment  . . . . . . . . . . . . . . . . . . . . . . . . . .    2
  Regulation is a key NREN policy issue. . . . . . . . . . . . . .    3
  Technology Transfer Goals Achieved?  . . . . . . . . . . . . . .    4
  The Context for Policy Setting . . . . . . . . . . . . . . . . .    4
  Whom Shall the Network Serve?  . . . . . . . . . . . . . . . . .    5
  Access to the NREN is a key policy issue . . . . . . . . . . . .    6
  How Far To Extend Network Access?  . . . . . . . . . . . . . . .    6



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  A Corporation for Public Networking? . . . . . . . . . . . . . .    9
  Summary  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14
  Security Considerations  . . . . . . . . . . . . . . . . . . . .   17
  Author's Address . . . . . . . . . . . . . . . . . . . . . . . .   17

The Dilemma of an Unregulated Public Resource in a Free Market
Environment

  As currently structured, the NSFnet and american Internet provide
  access to several million researchers and educators, hundreds of
  thousands of remote computers, hundreds of databases, and hundreds of
  library catalogues.  Money being invested in the network as a result
  of the High Performance Computing and Communications (HPCC) initiative
  should considerably increase the numbers and variety behind this
  unprecedented collection of resources.  No other computer network on
  earth currently comes close to providing access to the breadth and
  depth of people and information.  If access to information is access
  to power, access to the national computer network will mean access to
  very significant power.

  Furthermore, access to the american Internet and NREN is also
  access to the worldwide Internet.  According to the Director for
  International Programs at the NSF in February 1992, the development
  of the Internet over the past twelve years has been one of
  exponential growth:

              Date           Connected Hosts

              August 1981    213
              October 1985   1,961
              December 1987  28,174
              January 1989   80,000
              January 1991   376,000
              January 1992   727,000

  These hosts are computers to which anyone in the world with Internet
  access can instantaneously connect and use if there are publically
  available files.  Any host may also be used for remote computing if
  the system administrator gives the user private access.  These seven
  hundred thousand plus hosts are located in more than 38 nations.  But
  they are only part of the picture.  By system-to-system transfer of
  electronic mail they are linked to probably a million additional
  hosts.  According to Dr. Larry Landweber of the University of
  Wisconsin, as of February 10, 1992, Internet electronic mail was
  available in 106 nations and territories.






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  Unfortunately, our current regulatory system does not distinguish
  between the unique nature of the Internet and commercial systems like
  Prodigy and Compuserve where perhaps a million people pay monthly
  fees for access to systems offering a few dozen databases run from
  two or three hosts and electronic mail to several hundred thousand
  people instead of many millions.  (The picture is made somewhat fuzzy
  by the fact that Compuserve does provide electronic mail access to
  the Internet through a gateway and for an extra charge.)  The Federal
  Communications Commission (FCC) considers all three to be Value Added
  Networks (VANs) run by Enhanced Service Providers.  All use common
  carriers to provide their enhanced services and the FCC, in refusing
  to regulate them, reasons that all services are roughly alike.  If,
  for example, Compuserve charges too much, the consumer can quit
  Compuserve and move to Prodigy.  Or, if the monthly cost of access to
  the Internet were to become too much, access to Prodigy or Compuserve
  would be basically the same thing.  Here unfortunately the analogy
  fails: the Internet now and the NREN to be, with its unparalleled
  resources, is not the same.  Nevertheless, the FCC points out that
  without Congressional action it is powerless to regulate NREN service
  providers.

Regulation is a key NREN policy issue.

  Perhaps there will be no need for regulation.  Hopefully, the
  marketplace for the provision of network services will remain
  competitive and higher prices and cream skimming will not keep the
  national network out of the reach of the general public who wish to
  avail themselves of what it has to offer.  However, given the scope
  and power of what is contemplated here, Congress should realize that
  there are important considerations of social and economic equity
  behind the question of access to the network.  This is especially
  true since libraries and groups representing primary and secondary
  schools are demanding what could be considered as universal access to
  the network without having any knowledge of how such access might be
  funded.

  The economic stakes are huge.  Other players such as US West's
  Advanced Communications division are entering the market and AT&T is
  expected to do so by the spring.  When combined with the award of the
  EINet backbone to Uunet, their entry should help to level the playing
  field.  While one company is less likely to dominate such an
  uncontrolled, unregulated market, those concerned about widespread
  affordable access to the network would do well to watch unfolding
  events with care.







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Technology Transfer Goals Achieved?

  Policy makers may ask how much priority the Federal government should
  continue to give technology transfer in a market where the technology
  that allegedly still needs aiding is showing remarkable signs of
  maturity?  As they debate the course on which they wish to take the
  network over the next five years, policy makers may find that one
  answer to the apparent disparity between the emphasis in the
  legislation on the provision of the network by the government, and
  the growing number of commercial sources of network availability is
  that the market matured very rapidly while the HPCC legislation
  remained unchanged.

  In view of all the remarkable commercial achievements (outlined in
  this essay) in the four years since the NREN idea arose, perhaps the
  policy objective of technology transfer for economic competitiveness
  could be considered to be achieved!  A commercially viable high speed
  data networking industry, with the entrance of Sprint in January 1992
  and the anticipated entrance of AT&T, has reached maturity.

  Therefore, having successfully achieved its technology transfer
  goals, the Congress must decide whether to continue to underwrite the
  network as a tool in support of science and education goals.  It
  seems reasonable to assume that this support could be undertaken in a
  way that would not seriously undermine the commercial TCP/IP data
  networking market place.

The Context for Policy Setting

  In order to make informed choices of goals for the network, Congress
  must understand the context of a rapidly commercializing network.
  The resulting context is likely to produce serious impacts both on
  the user community and the development of future network technology.
  It is likely to make some goals more easily attainable than others.
  Given its maturity, the commercialization of TCP/IP wide area
  networking technology is inevitable.

  Some have already begun to question whether the government should be
  providing backbone services where commercial alternatives are
  currently available and are expected to grow in number.

  Supporters of the NREN vision argue that the NSF is using government
  funds to build a leading edge network faster than the commercial
  alternatives.  They say that use of public funds on such technology
  development is appropriate.  Their critics state that the T-3
  technology (also called DS-3) is dead end and point out that the next
  logical step is refining the network so that it can use ATM and
  SONET.  For aggregate gigabit speeds along the backbone, use of ATM



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  and SONET will be necessary.  Critics claim that the T-1 backbone
  could be engineered to accommodate the network for a while longer
  while Federal funds would be more appropriately invested now in an
  ATM and SONET development effort.  They say that Federal policy is
  being used to enable IBM to have a testbed for the development of
  DS-3 TCP/IP routers when Network Technologies makes a comparable
  product that is already proven and reliable.  Whether the Federal
  Government should be providing backbone services or merely support
  for access and improved network features is a key policy issue.

  Finding the best answer to the questions raised by this issue is
  likely to center on the ability of the Federal mission agencies
  involved in high speed network development to articulate a long term
  plan for the development of new network technology over the next
  decade.  How we shall use what is learned in the gigabit testbeds has
  not yet been clearly addressed by policy makers.  Continuation of the
  testbeds is currently uncertain. There is also no plan to apply the
  outcome to the production NREN.  These are areas deserving of federal
  involvement.  The current players seem to be incapable of addressing
  them.  Some possible courses of Federal action will be identified in
  the discussion of a Corporation for Public Networking to follow.

  In the meantime, we face a period of four to five years where the NSF
  is scheduled to take the NSFnet backbone through one more bid.  While
  Federal support for the current production backbone may be
  questionable on technology grounds, policy makers, before setting
  different alternatives:

         -    must understand very clearly the dual policy drivers
              behind the NREN,

         -    must define very clearly the objectives of the network,
              and

         -    must carefully define a both a plan and perhaps a
              governing mechanism for their achievement.

  A sudden withdrawal of Federal support for the backbone would be
  likely to make a chaotic situation more so.  However, the application
  of focused planning could define potentially productive alternatives
  to current policies that could be applied by the time of the backbone
  award announcement in April of 1993.

Whom Shall the Network Serve?

  The HPCC legislation gives the FCCSET a year to prepare a report to
  the Congress on goals for the network's eventual privatization.
  Thanks to the NSF's decision to rebid the backbone, this task may no



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  longer be rendered moot by premature network privatization.  The
  FCCSET Report needs to address many questions.

  One question is the extent to which, in the higher education
  environment, Congress through the National Science Foundation, or
  perhaps through another entity of its own choosing will continue to
  underwrite networking.  A related question is whether or when
  Congress should act in order to preserve a competitive networking
  provider environment.  A question subsidiary to this is whether a
  competitive commercial environment is adequate to ensure a fertile
  data networking technical R&D environment?  Another related question
  centers on what is necessary to preserve network access that is as
  widely available to post-secondary education as possible?  Further
  issues center on what type of access to promote.  Should Congress
  support the addition to the network of many of the expensive
  capabilities promoted by the advocates of the NREN vision?   What if
  funds spent here mean that other constituencies such as K-12 do not
  get adequate support?

Access to the NREN is a key policy issue.

  If network use is as important for improving research and education
  as its supporters allege it to be, Congress may wish to address the
  issue of why, at institutions presently connected to the network,
  only a small minority of students and faculty are active users.  If
  it examines the network reality carefully, Congress may sense that it
  is time to leverage investment in the network by improving the
  network's visibility and usability within the communities it is
  supposed to serve through improved documentation and training rather
  than by blindly underwriting massive increases in speed.

How Far To Extend Network Access?

  With the broadening discussion of the NREN vision, expectations of
  many segments of the population not originally intended to be served
  by the network have been raised.  An avid group of educators wishing
  to use the network in K-12 education has arisen.  If
  commercialization brought significant price increases, it could
  endanger the very access these educators now have to the network.

  Native Americans have begun to ask for access to the network.  How
  will Congress respond to them?  And to the general library community
  which with the Coalition for Networked Information has been avidly
  pressing its desires for NREN funds?  And to state and local
  government networks?

  Congress should recognize that choices about network access for these
  broader constituencies will be made at two levels.  Access for large



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  numbers could be purchased by the government from commercial
  providers at considerable expense - an unlikely development in view
  of the Federal budget deficit.  In the meantime, given the current
  mix of government supported and commercial providers, the environment
  for these user classes is quite competitive.  Those who are able to
  pay their own way can generally gain access to the network from a
  choice of providers at reasonable cost.  Congress can act on behalf
  of these constituencies by ensuring that the market for the
  provisioning of network services remains open and competitive.  Short
  of either regulating the industry or establishing a new government
  operated network, careful use of subsidies will have the most impact
  on ensuring an open and competitive network.  Congress can also
  choose to view access as a function of price.  If Congress does opt
  for this course, it has several choices to ensure that prices will be
  affordable.  It could seek to impose regulations on the network
  providers through the FCC at a national level or urge the state PUCs
  to do it at the local level.  (Of course the viability of state PUC
  regulation, becomes questionable by the near certainty that there
  would be little uniformity in how the PUCs in each state would treat
  a national service.)  Congress also could impose a tariff on network
  providers profits and use the tariff to subsidize universal access.
  It should, of course, understand that these courses of action would
  raise touchy questions of conflicts between Federal and state
  jurisdiction.

  Congress may also have been vague in dealing with these broader
  network constituencies, because it wishes to sidestep making these
  difficult choices.  The origin of most of these choices may be traced
  to the addition of education policy goals for the Network symbolized
  by the changing of its name from the National Research Network to the
  National Research and Education Network in the OSTP Program Plan in
  September 1989. While this action got the attention and support of
  new constituencies for the Network, it did not bring any significant
  shift to the science and mission agency oriented direction of network
  development.  The legislation remained essentially unchanged:
  "educators and educational institutions" were as specific as the
  language of the bills ever got.  Perhaps this was almost on purpose?
  Having goals that were more specific might imply the need to justify
  with some precision why some individual segments of the networking
  community deserved service while some did not.

  Unless Congress were able to construct a separate rationale for the
  needs of each of the network constituencies - from supercomputer
  users to grade school students - specific goal setting by Congress
  might imply that Congress was arbitrarily judging some network
  constituencies to be more worthy than others.  This would be a
  difficult course to follow because those who were left out would want
  to know what the basis for such a judgment would be?  Solid answers



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  would be difficult to come by because networking as enabling
  educational technology is so new that no one is as yet quite sure how
  to measure its value.  Without such assurances, it may be difficult
  for Congress to know how to justify its spread on any other grounds
  than equity of opportunity.

  Indeed there is a constituency of grass roots-oriented, small-scale
  network builders allied with elements of the library community.  This
  constituency suggests that computer networks will very quickly become
  such powerful means of access to information that lack of access to
  them will soon will carry serious implications for social and
  economic equity within the nation.

  These groups can be expected to be very vocal in their demands that
  some minimal level of access to the national network be widely
  available and affordable.  They are likely to ask that Congress turn
  its attention to the feasibility of establishing the goal of
  universal access to the national network.  Although the technology
  and economic conditions are quite different from the conditions of
  the 1934 Communications Act, they are likely to demand action
  analogous to that.

  Motivated by these concerns, Mitch Kapor has been arguing very
  eloquently for the building of the NREN as a National Public Network.
  Asked to define what he saw as being at stake, he said the following
  to the author in September 1991:

     "Information networking is the ability to communicate by means of
     digitally-encoded information, whether text, voice, graphics, or
     video.  Increasingly, it will become the major means for
     participation in education, commerce, entertainment, and other
     important social functions.  It is therefore important that all
     citizens, not just the affluent, have the opportunity to
     participate in this new medium.  To exclude some is to cut them
     off from the very means by which they can advance themselves to
     join the political social and economic mainstream and so consign
     them to second-class status forever.  This argument is analogous
     to that which was made in favor of universal voice telephone
     service - full social participation in American life would require
     access to a telephone in the home."

  Kapor through his Electronic Frontier Foundation, (EFF) is working
  hard to make sure that Congress is compelled to address the question
  of universal network access.  The EFF has also begun to press for the
  use of ISDN as a technologically affordable means of bringing the
  benefits of a national network to all Americans.

  If Congress wishes to promote widespread access to the network and to



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  design an network that is amenable to widespread use, it will do well
  to examine carefully the position that the EFF is articulating.  It
  would also do well to look outside the confines of the Federal
  Networking Council (FNC) and the FNC Advisory Commission that is made
  up of members similar in orientation to the FNC and is scheduled for
  only four meetings and a two-year-long existence.  If it wishes to
  increase secondary and elementary school access to the network, it
  could investigate enlarging the very small role granted by the
  legislation to the Department of Education.  Unfortunately, without
  careful planning what would be gained by this is unclear.  The
  Department of Education has never played a significant role in
  computer networking.  The immediate needs of the K-12 arena are
  focused mainly around maintaining the existence of affordable low
  bandwidth access and the support of successful pioneering efforts.

  When Congress states its intentions for the scope of access to the
  network and, as a part of doing so, sets priorities for investment in
  network bandwidth versus ease of use, it can then turn its attention
  only to one other area.

A Corporation for Public Networking?

  Network governance and oversight are key policy issues.

  If Congress has doubts about the current situation, it might want to
  consider the creation of an entity for NREN management, development,
  oversight and subsidization more neutral than the NSF.

  Action should be taken to ensure that any such an entity be more
  representative of the full network constituency than is the NSF.  If
  Congress decides to sanction network use by a community broader than
  the scientific and research elite, it must understand the importance
  of creating a forum that would bring together the complete range of
  stake holders in the national network.

  While such a forum would not have to be a carbon copy of the
  Corporation for Public Broadcasting, given the half billion dollars
  to be spent on the network over the next five years and the very
  confused and contentious policy picture, it might make sense to spend
  perhaps a million dollars a year on the creation of an independent
  oversight and planning agency for the network. Such an entity could
  report its findings to the Congress and respond to goals formulated
  by the Congress.

  Congress could declare the development and maintenance of a national
  public data network infrastructure a matter of national priority. It
  could make it clear the government will, as it does in issues of
  national transportation systems, the national financial system, and



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  national communications systems, maintain an interest in the
  development and control of a system that serves both the goals of
  improved education and new technology development.

  To carry out such a mandate, a Corporation for Public Networking
  (CPN) could have fifteen governors nominated by the members of the
  network community and subject to the approval of the Congress.

  Each governor would represent a network constituency.

              1. The NSF
              2. Department of Energy
              3. National Aeronautics & Space Administration
              4. Advanced Research Projects Agency
              5. Corporate Users
              6. K-12
              7. Higher Education
              8. Public Libraries & State and Local Networks
              9. Commercial Network Information Service Providers
             10. Interexchange Carriers such as AT&T, MCI, Sprint, etc.
             11. The Regional Bell Operating Companies
             12. Personal Computer Users
             13. Computer Manufacturers
             14. Disabled Users
             15. University Computing

  Since the legislation calls for backbone nodes in all 50 states, such
  a structure would be a reasonable way to coordinate Federal support
  for the network on a truly national basis - one that, by
  acknowledging the network as a national resource, would give
  representation to the full breadth of its constituencies.  Governors
  could use the network to sample and help to articulate the national
  concerns of their respective constituencies.

  If it adopted these goals, Congress could give a CPN a range of
  powers:

        1.   The CPN could be a forum for the expression of the
             interests of all NREN constituencies.  In the event the
             network were to be administered by the NSF, it could be
             serve as a much more accurate sounding board of network
             user concerns than the FNC or the FNC Advisory Council.

        2.   The CPN could be authorized to make recommendations to NSF
             and other agencies about how funds should be distributed.

             Such recommendations could include truly independent
             assessments of the technical needs of the network



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             community and the most cost effective ways of achieving
             them.

        3.   The CPN could itself be given responsibility for funding
             distribution.  Such responsibilities would incur an
             increase in administrative costs and staff.  Nevertheless,
             by creating an opportunity to start a process from scratch
             and one that would consequently be free of the vested
             interests of the National Science Foundation in high-end
             network solutions, Congress would likely get a clearer
             picture of where and how effectively public monies were
             being expended. With such responsibility the CPN could
             also keep extensive pressure on network providers to
             remain interconnected.  When thinking about cost, Congress
             should also remember that effective oversight of subsidies
             funneled through NSF would imply the hiring of extra staff
             within that agency as well.

        4.   Congress might want to ask a CPN to examine the use of the
             $200 million in NREN R&D monies. Policy direction
             dictating the spending of Federal funds is still suffering
             from the fuzzy boundaries between the network as a tool
             for leveraging technology competitiveness into commercial
             networking environments and the network as a tool to
             facilitate science and education.  If Congress decides
             that the major policy direction of the network should be
             to develop the network for use as a tool in support of
             science and education, then it may want monies directed
             toward ARPA to be focused on improved databases, user
             interfaces and user tools like knowbots rather than a
             faster network used by fewer and fewer people.  A CPN that
             was representative of the breadth of the network's user
             constituencies could provide better guidance than the
             FCCSET or ARPA for spending Federal subsidies aimed at
             adding new capabilities to the network.

        5.   Additional levels of involvement could have the CPN act as
             a national quasi-board of networking public utilities.  It
             could be given an opportunity to promote low cost access
             plans developed by commercial providers.  If it borrowed
             some of the fund raising structure of National Public
             Radio, it should be able to raise very significant funds
             from grass roots users at the individual and small
             business level who are made to feel that they have a stake
             in its operation.

        6.   If congress wanted to increase further the role given the
             CPN, it could decide that with network commercialization



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             and technology transfer goals completed, the majority of
             the NREN funds go to the CPN which could then put out a
             bid for a CPN backbone.  In effect Congress could dictate
             that the backbone announced by the NSF for implementation
             in 1993 be implemented and run as a joint project between
             the NSF and a CPN.

             All entities should be considered eligible to join and use
             the CPN in support of research and education.  Commercial
             companies who wanted to use the CPN to interact with the
             academic community should pay a commercial rate to do so.

             With the availability of a parallel commercial network,
             commercial restrictions on the CPN could be very much
             loosened to include anything in support of research and
             education.  The CPN would study and report to Congress on
             how gateways between commercial TCP/IP networks and the
             CPN network could be maintained.

        7.   Some suggest that the Congress go even further. These
             people emphasize that a replacement for the R&D aspects of
             the Internet in the context of commercialization and
             privatization is uncertain.  Bell Labs and Bellcore remain
             as the research arms of the Public Switched Telephone
             Network.  However neither of them have ever developed
             major strengths in wide area data networking. Nor do they
             appear to be likely to do so in the near future.  Despite
             this situation, the major private investment made in the
             Gigabit Testbeds indicate that the american
             telecommunications industry feels a need to invest in
             continued research.  This is something that the current
             commercial players are too small to do.  Furthermore, it
             is something that the larger players driven by pressure to
             report quarterly profits may find difficult to do.

             Congress could make a decision that Federal investment in
             the technology should emphasize less pump-priming to
             increase the pace of what most see as inevitable
             commercialization and more the continued building of new
             networking technology for both technology transfer and
             support of the technology as an enabling tool.  In this
             case Congress could direct the CPN to plan, deploy and
             manage a state of the art public information
             infrastructure. With goals for constituencies and levels
             of service defined, the CPN could produce for Congress
             multiple scenarios for developing and maintaining two
             networks.




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             The first would be an experimental network where the very
             newest technologies could be explored.  It could be very
             similar to the current gigabit testbeds but this time with
             all five projects linked together.  The second would be a
             state-of-the-art operational network that can provide wide
             spread field trials of technology developed on the
             experimental network. With the maturation of the
             technology on the operational network it would be
             available for open transfer to commercial service.  It
             should be remembered that such a continuous widespread
             network R&D environment would provide wide spread training
             experience for graduate students that would otherwise be
             unavailable.

             Initial seed money would come from public funds. However,
             the bulk of support could come from a percentage of
             profits (as cash or in kind contributions) that
             participating companies would be required to contribute to
             the CPN as the price of admission for developing and
             benefiting from new technology.  Care should be taken in
             structuring contributions in a way that small start-up
             firms would not be locked out.  To ensure this, Congress
             could mandate that the CPN commissioners (perhaps with
             appropriate oversight from the National Academy of
             Sciences, the IEEE, or the ACM) develop a plan to ensure
             that the cost of entry to such a testbed not exceed the
             capitalization of the current small commercial players.

             It could also require the development of proposals to
             handle the issues of interconnection billing, billing for
             actual use versus size of connection, and interoperability
             among network providers.

             A different financing model could be explored if the CPN
             were instructed to report on the feasibility of selling
             shares to commercial carriers in a national networking
             testbed and R&E network where carriers could, over a long
             term basis, develop and mature new networking technologies
             before transferring them to the commercial marketplace.

       8.    In its November 1, 1991 recommendations to the National
             Science Foundation, FARNET suggested that the NSF should
             consider the issuance of several separate solicitations
             for the development of software tools for end-user
             applications and network management and operations.  To
             emphasize its point it added:  "we believe that the lack
             of useful tools for information retrieval and display is
             one of the biggest impediments to the productive use of



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             the network and has impaired the credibility of the NREN
             in the eyes of the target user populations."  FARNET
             admonished the NSF to emphasize open architectures and
             standards in its solicitations, adding that "where
             standards are not adequately understood or developed, the
             NSF should support programs to test, evaluate and improve
             them."

             FARNET concluded by recommending

                  "that the NSF, working with the user community and
                  the providers, define and implement clear criteria
                  for the award of additional funding to mid-level and
                  campus networks . . . The new criteria should be
                  designed to further . . . goals such as the extension
                  of network services to new or underserved communities
                  (for ubiquity); the improvement of network
                  operations, procedures and tools (for reliability);
                  the enhancement of existing services through
                  development activities, upgrading of existing
                  connections to 'have not' institutions; leveraging of
                  state, local, and private funds (to maximize the
                  impact of Federal investment), and training and
                  support for end-users (in cooperation with national
                  and local programs)."

             If a CPN is created, it should be directly involved with
             working toward these important goals.  If implementation
             of the network is left to the National Science Foundation,
             Congress should emphasize the importance of the NSF's
             meeting these goals.

        9.   Finally, a strong and broad-based CPN might be able to
             make recommendations to Congress on the identification and
             resolution of problems of telecommunications policy
             engendered by the continued growth of this network
             technology.  It could perhaps play an educational role in
             advising state Public Utilities Commissions on the long
             term implications of their decisions.

Summary

  Policy makers must soon decide whether the National Research and
  Education Network is a public or a private good.  Although
  privatization appears to be proceeding apace, since the network
  backbone will be rebid, there should be time for some careful
  planning for the development and evolution of what can, within 10 to
  20 years, become an extraordinarily powerful system that is as



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RFC 1527                Cook Report on Internet           September 1993


  ubiquitous as the current telephone network and provides all
  Americans with access to information in much the same way as public
  libraries were created for a similar purpose a century ago.

  Congress must understand that the NREN is not just a new technology
  (indeed much is of it is old technology), but has the potential to
  become the most powerful means of access to information ever created.
  Within this context it must decide whom the NREN shall serve.  It
  must decide whom shall have access to the NREN.

  Once it has done this further options fall into four major areas:

             First:    Congress must decide degree of oversight
                       that is necessary to extend to the network. Such
                       oversight could range from legislating that the
                       FCC regulate the network, to strict reviews of
                       the NSF's actions, to vesting oversight powers
                       in a Corporation for Public Networking.

             Second:   It must decide whether the appropriate place to
                       subsidize technology transfer is within a
                       privatized operational NREN or within the
                       experimental gigabit testbeds.  Without a better
                       understanding both of how the technologies are
                       evolving in the commercial market place, and the
                       evolution of both the testbeds and the NREN, it
                       will be difficult to make make a wise decision.
                       In addition, we must expect that the nature of
                       its choice will be further influenced by its
                       decision on whom the network is to serve.

             Third:    It must decide whether to subsidize a backbone
                       for an NREN.  If it does subsidize such a
                       backbone, it must decide whether it shall be
                       built as a private network or as a part of the
                       PSTN.

             Fourth:   It must decide whether to subsidize additional
                       connectivity or broader use within connected
                       institutions or both.  In other words, should
                       more institutions be connected to the network,
                       or should the network be made easier to use by
                       the members of those institutions already
                       connected?

  To the extent that Congress chooses to pursue options three and four,
  it will want to explore the scenario for the Corporation for Public
  Networking discussed above.



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RFC 1527                Cook Report on Internet           September 1993


  Access to information is access to power.  The creation of a National
  Research and Education Network based on the NSFnet and the remainder
  of the american Internet will mean the creation of a national
  information access system of unprecedented power.  In its ability to
  affect the lives and well being of Americans, the NREN, if properly
  designed, will be just as significant as the national Interstate
  highway system and the national electric power grid.  The national
  highway, or the national power grid, or the national telephone system
  could serve as models for implementation.  The Federal Government
  provides a public but otherwise unregulated Interstate highway system
  with universal access available to all Americans.  Private industry
  provides our electric power.  However, it was allowed to do so only
  in return for submitting to Federal and state regulation designed to
  ensure affordable national access by all citizens. The national
  telephone system has been established under a similar "social
  contract".  If the nation is not to be dangerously split into
  information rich and information poor classes, policy makers have
  about five years in which to choose a Federally provided National
  network, or a privately provided but nationally regulated network.

  During the development and maturation of the national network, policy
  makers should also be very attentive to its impact on the public
  switched telephone network (PSTN). The technology involved and the
  speed with which it is changing will only increase the potentially
  serious impact from the freedom of unregulated components of the
  telecommunications industry to pursue market solutions that will keep
  regulated companies from becoming viable players.  We must realize
  that we are about to enter a power struggle for the control of the
  information resources of the 21st century that promises to be every
  bit as harsh and bruising as the power struggle for natural resources
  was at the end of the last century.

  While the intentions of most appear to be good, as this study has
  shown, the playing field is terribly confused. Gigabit technology (if
  properly understood) is desirable. Still we should take great care
  that its cost does not raise the price of low bandwidth or "low end"
  entry into the network.

  Lack of a specific definition of communities to be served, lack of an
  agreed upon plan for how they shall be served, and lack of funds to
  serve everyone have combined to create the present chaotic situation
  in which many of the players have been motivated primarily by a
  desire to increase their institutional role in order to get larger
  Federal allocations of funds.

  In the absence of both a well-thought-out plan agreed to by all
  parties and adequate monetary support, the grand push to accelerate
  both the speed and scope of the technology could have the ironic role



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RFC 1527                Cook Report on Internet           September 1993


  of weakening the entire foundation of the network.  Until the
  Congress provides more direction, the squabbling that has developed
  is likely to continue.  In the absence of such direction, at best
  large sums of public funds may be ineffectively spent, and at worst a
  picture of empire building could emerge that would make any Federal
  support for research or educational networking unlikely.

  Such an outcome should be avoided because the potential of a well
  designed and developed network to do great good in both policy arenas
  is very significant.  Unfortunately with the NSF under mounting
  criticism, ANS on the defensive and rumored to be financially
  weakened, and Congressional hearings scheduled for mid-March, the
  potential for a destructive free-for-all is very great.

Security Considerations

  Security issues are not discussed in this memo.

Author's Address

  Gordon Cook, Editor and Publisher
  COOK Report on Internet
  431 Greenway Ave
  Ewing, NJ 08618

  Phone: (609) 882-2572
  EMail: [email protected]
























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