RFC 1527 (rfc1527) - Page 3 of 17

What Should We Plan Given the Dilemma of the Network?

RFC 1527                Cook Report on Internet           September 1993


   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.







Cook