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Metered Use of the Internet Marty Gordon 30 May 1994 17:36 UTC

Forwarded from Marty Gordon (m_gordon@library.fandm.edu).  Please
do *not* return requested info. to SERIALST.  Thanks.  --ed.

----------------------------Original message----------------------------
 Date: Wed, 25 May 1994 11:55:48 -0400
 From: "Dee Pullen (CIRC)" <dpullen@DUDLEY.LIB.USF.EDU>
 Subject: PLEASE READ (fwd)
 To: Multiple recipients of list LIBSUP-L <LIBSUP-L%UWAVM.BITNET@asu.edu>

 Folks,
 If you haven't seen this and you are interested in using the Internet in
 the future you may find it of interest to read the following and to
 respond.

          Subject: Metered Usage of the Internet: JSN

          A very bad storm is brooding on the horizon.

          In the future, you might have to pay a charge for every E-mail
          message you send or receive, every Usenet article you read,
          every kilobyte of data you transfer with ftp, every hypertext
          link you follow with NCSA Mosaic or Gopher...

          Hopefully this frightens you as much as it does me.
          But it will happen, unless YOU do something about it.

          Please read the attached, fill out the requested info, and
          mail it back to mike@essential.org.  It also wouldn't hurt to
          forward a copy of this to everyone you know on the Internet.

          Thanks for your support.

          Craig Smith, <bcs@cs.tamu.edu  or <craig@stat.tamu.edu
          Texas A&M University, Dept. of Computer Science
          205 HRBB, 862-2084 (CPSC).   [PGP2 Public Key Available on Request]
          ---

          TAXPAYER ASSETS PROJECT - INFORMATION POLICY NOTE
          May 7, 1994

          -    Request for signatures for a letter to NSF opposing metered
               pricing of Internet usage

          -    Please repost this request freely

          The letter will be sent to Steve Wolff, the Director of
          Networking and Communications for NSF.  The purpose of the letter
          is to express a number of user concerns about the future of
          Internet pricing.  NSF recently announced that it is awarding five
          key contracts to telephone companies to operate four Internet
          "Network Access Points" (NAPs), and an NSF funded very high speed
          backbone (vBNS).  There have been a number of indications that
          the telephone companies operating the NAPs will seek permission
          from NSF to price NAPs services according to some measure of
          Internet usage.  The vBNS is expected to act as a testbed for new
          Internet pricing and accounting schemes.  The letter expresses
          the view that metered pricing of Internet usage should be
          avoided, and that NSF should ensure that the free flow of
          information through Internet listserves and file server sites is
          preserved and enhanced.

            Jamie Love, Taxpayer Assets Project (love@essential.org; but
               unable to answer mail until May 15).  Until then, direct
               inquires to Michael Ward.

          If you are willing to sign the letter, send the following
               information to Mike Ward of the Taxpayer Assets Project
               (mike@essential.org, fax: 202/234-5176; voice: 202/387-8030;
               P.O. Box 19367, Washington, DC 20036):

          Names:    ___________________________
          Title:    ___________________________   (Optional)
          Affiliation:   ____________________________________
          (for purposes of identification only)
          Address:       ______________________________________
          City; St, Zip  ________________________________
          Email Address: _____________________________________
          Voice:         __________________________________
          (for verification)

                                      The letter follows:

          Steve Wolff
          Director
          Division of Networking and Communications
          National Science Foundation
          1800 G Street
          Washington, DC  20550

          Dear Steve:

          It is our understanding that the National Science Foundation
          (NSF) and other federal agencies are developing a new
          architecture for the Internet that will utilize four new Network
          Access Points (NAPs), which have been described as the new
          "cloverleaves" for the Internet.  You have indicated that NSF is
          awarding contracts for four NAPs, which will be operated by
          telephone companies (Pac Bell, S.F.; Ameritech, Chicago; Sprint,
          NY; and MFS, Washington, DC).  We further understand that NSF has
          selected MCI to operate its new very high speed backbone (vBNS)
          facility.

          There is broad public interest in the outcome of the negotiations
          between NSF and the companies that will operate the NAPs and
          vBNS.  We are writing to ask that NSF consider the following
          objectives in its negotiations with these five firms:

               PRICING.

          We are concerned about the future pricing systems for Internet
          access and usage.  Many users pay fixed rates for Internet
          connections, often based upon the bandwidth of the connection,
          and do not pay for network usage, such as the transfer of data
          using email, ftp, Gopher or Mosaic.  It has been widely reported
          on certain Internet discussion groups, such as com-priv, that the
          operators of the NAPs are contemplating a system of usage based
          pricing.

          We are very concerned about any movement toward usage based
          pricing on the Internet, and we are particularly concerned about
          the future of the Internet Listserves, which allow broad
          democratic discourse on a wide range of issues.  We believe that
          the continued existence and enhancement of the Internet
          discussion groups and distribution lists is so important that any
          pricing scheme for the NAPs that would endanger or restrict their
          use should be rejected by the NSF.

          It is important for NSF to recognize that the Internet is more
          than a network for scientific researchers or commercial
          transactions.  It represents the most important new effort to
          expand democracy into a wide range of human endeavors.  The open
          communication and the free flow of information have make
          government and private organizations more accountable, and
          allowed citizens to organize and debate the widest range of
          matters.  Federal policy should be directed at expanding public
          access to the Internet, and it should reject efforts to introduce
          pricing schemes for Internet usage that would mimic commercial
          telephone networks or expensive private network services such as
          MCI mail.

          To put this into perspective, NSF officials must consider how any
          pricing mechanisms will change the economics of hosting an
          Internet electronic mail discussion groups and distribution
          lists.  Many of these discussion groups and lists are very large,
          such as Humanist, GIS-L, CNI-Copyright, PACS-L, CPSR-Announce or
          Com-Priv.  It is not unusual for a popular Internet discussion
          group to have several thousand members, and send out more than
          100,000 email messages per day.  These discussion groups and
          distribution lists are the backbones of democratic discourse on
          the Internet, and it is doubtful that they would survive if
          metered pricing of electronic mail is introduced on the Internet.

          Usage based pricing would also introduce a wide range of problems
          regarding the use of ftp, gopher and mosaic servers, since it
          conceivable that the persons who provide "free" information on
          servers would be asked to pay the costs of "sending" data to
          persons who request data.  This would vastly increase the costs
          of operating a server site, and would likely eliminate many
          sources of data now "published" for free.

          We are also concerned about the types of  accounting mechanisms
          which may be developed or deployed to facilitate usage based
          pricing schemes., which raise a number of concerns about personal
          privacy.  Few Internet users are anxious to see a new system of
          "surveillance" that will allow the government or private data
          vendors to monitor and track individual usage of Information
          obtained from Internet listserves or fileserves.

               ANTI-COMPETITIVE PRACTICES

               We are also concerned about the potential for anti-
          competitive behavior by the firms that operate the NAPs.  Since
          1991 there have been a number of criticisms of ANS pricing
          practices, and concerns about issues such as price discrimination
          or preferential treatment are likely to become more important as
          the firms operating the NAPs become competitors of firms that
          must connect to the NAPs.  We are particularly concerned about
          the announcements by PAC-Bell and Ameritech that they will enter
          the retail market for Internet services, since both firms were
          selected by NSF to operate NAPs.  It is essential that the
          contracts signed by NSF include the strongest possible measures
          to insure that the operators of the NAPs do not unfairly
          discriminate against unaffiliated companies.

          Recommendations:

          As the Internet moves from the realm of the research community to
          a more vital part of the nation's information infrastructure, the
          NSF must ensure that its decisions reflect the needs and values
          of a much larger community.

          1.   The NSF contracts with the NAPs operators will include
               clauses that determine how the NAP services will be priced.
               It is important that NSF disclose and receive comment on all
               pricing proposals before they become final.  NSF should
               create an online discussion list to facilitate public dialog
               on the pricing proposals, and NSF should identify its
               criteria for selecting a particular pricing mechanism,
               addressing the issue of how the pricing system will impact
               the Internet's role in facilitating democratic debate.

          2.   NSF should create a consumer advisory board which would
               include a broad cross section of consumer interests,
               including independent network service providers (NSPs),
               publishers of Internet discussion groups and distribution
               lists, academic networks, librarians, citizen groups and
               individual users.  This advisory board should review a
               number of policy questions related to the operation of the
               Internet, including questions such as the NAP pricing, NAP
               operator disclosure of financial, technical and operational
               data, systems of Internet accounting which are being tested
               on the vBNS and other topics.

          3.   NSF should solicit public comment, though an online
               discussion group, of the types of safeguards against
               anticompetitive behavior by the NAPs which should be
               addressed in the NSF/NAPs contracts, and on issues such as
               NAPs pricing and Internet accounting systems.

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