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FYI: Someone wants to build a monopoly.

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  • From: Peter Lothberg < >
  • Date: Sun, 6 Sep 92 12:58:47 MET DST

Date: Mon, 31 Aug 1992 14:34:34 +0200
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Subject: EBONE integration scenario
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OU-SC, 24 August 1992

Report to the OU shareholder meeting on the EBONE integration scenario

I. Task: The OU Steering Committee (OUSC) had the task to identify an
-------  integration scenario for the IP service which is presently 
	 been organised under the name EBONE. During that discussion 
	 a statement from th EBONE management committee has been sent
	 to the OUSC (see annex 2).

	 This document describes a possible scenario to incorporate
	 EBONE in the OU Business Plan. The General Assembly is asked
	 to decide upon this scenario as the answer to the statement of
	 the EBONE management committee.
II. External Material Used:

1) Ebone Line and Site Installation Specification
   Ebone Action Team (B.Stockman); 24 February 1992;
2) Management and Operation of the Ebone
   B.Stockman; 13 April 1992;
3) Ebone '92 IP Routing Model
   T.Bates, P.Lothberg; June 1992.
While 1) gives an overview on the technical details, 2) deals with
operational management procedures and 3) indicates the construction
principles of the Ebone configuration.
In addition to this material facts and figures about Ebone have
been supplied by several members of the Ebone Management Committee
(Dennis Jennings and Kees Neggers). These figures are the basis of
the cost analysis described in Annex 1.

III. Results:

2. General OU Multiprotocol Service
It is proposed that the OU should in the context of the Multiprotocol
Backbone Service (MPBS) offer three different types of access:
a) native X.25 (through access points P1i, i=1,2,3...; see fig.1);
b) native IP - pilot version through EMPP (through access points 
   P2i, i=1,2,3...);
c) native IP - through the existing Ebone structure (through access 
   points P3i, i=1,2,3...).
The commercial conditions for P1i and P2i are described in the
umbrella contract between PTT Telecom and -at present- RARE.
Both IP offerings are connected via two interface boxes (IF1 and
IF2); the whole MPBS of the OU can then be viewed in the following

      +----------------------MPBS box----------------------+
      I    +-----------------EMPP box-----------------+    I
P11---o----I                                          I----o---P21
      .    I                                          I    .
      .    I                                          I    .
P1i---o----I                                          I----o---P2j
      I    +------------------------------------------+    I
      I             I                        I             I
      I          +-----+                  +-----+          I
      I          I IF1 I                  I IF2 I          I
      I          +-----+                  +-----+          I
      I             I                        I             I
      I    +------------------------------------------+    I
      I    I  +-------------Ebone Kernel-----------+  I    I
      I    I  I                                    I  I----o---P31
      I    I  I                                    I  I    .  
      I    I  I                                    I  I    .
      I    I  I                                    I  I----o---P3k
      I    I  +------------------------------------+  I    I
      I    +-----------------Ebone box----------------+    I
  fig.1 General OU Multiprotocol Service
According to 1) the Ebone Kernel box comprises at present the
following configuration with the line# taken from 1):
        Stockholm            Amsterdam           CERN
         I                                        I
        2.3                                      2.5
        London                                   Montpellier
  fig.2 Ebone Kernel box
After an initial period the OU will base its IP service offering on
one system, and it will take the results of the EMPP evaluation
into account in its choice of system.
Until that moment customers are free to choose which IP services
they want to buy, EMPP and/or Ebone.
3. Organisational Structure
The OU will sell the IP service based on EBONE (P3i) to customers
on a contractual basis. That implies towards the customers that 
the EBONE system is exactly specified in advance and can only be 
changed in agreement with the parties affected by these changes.

The OU will subcontract suppliers of lines and sites that houses
and manages Ebone Boundary Systems (EBS). It is recommended to keep
these contractual relations as light weight as possible as far as
a) the formal relation between the OU and the EBS sites 
b) the OU and the organisations responsible for the lines,
c) the OU and the organisation that employs the operational staff
are concerned.
It is assumed that operational procedures are taken from existing
4. Quality of Service Guarantees
It is recognized that the service provided through the Ebone
structure has no well defined quality of service parameters and
there are no guarantees for which the customer of the OU can make
responsible either the OU or one EBS site or one organisation in
charge of line provision or provision of operational staff. 
The Ebone consortium will be invited to describe on short term the
present service levels as good as possible in order to allow the
OU management to define the actions required to maintain these
service levels.
5. Cost Analysis and Tariffs
In Annex 1 a model is presented describing the present Ebone box in
terms of backbone lines, gateways, access lines, equipment and
staff; all based on a number of assumptions. These assumptions have
been communicated with some members of the Ebone Management
Committee but not yet with the other participants in Ebone. For
that reason these assumptions have a preliminary character.
The model is more or less the same as the model used for the OU
business case. After the assumptions it is built up in three parts:
the requested access services from the customers, the costs of the
services and the allocation of costs (tariffs). The methodology
used for the allocation of costs is equivalent with the one used in
the RARE- PTT Telecom contract for the EMPP box. 
The tariffs for the IP services provided through the EMPP- and
Ebone structures are different and not cross-subsidized.
A warning has to be made that it is not possible to make a straight
comparison in terms of price and performance between EMPP IP
services and Ebone IP services due to the lack of service level
guarantees within Ebone.
6. Customer Base
The OU will accept present Ebone customers as customers of the OU
provided that:
a - the purpose and usage of the connection is in line with the OU 
    mission statement and
b - no third party traffic, neither international nor national, is 
    allowed without written permission from the OU management.
6. Migration
After an initial period the OU will base its IP service offering on
one system. This initial period will end as soon as this intended
single systeem has demonstrated its operational capabilities and is
able to supply the customers with the same or better services
against the same or better prices. After this initial period the OU
management will decide upon the migration scenario. The costs for
the migration from the Ebone to the final MPBS production phase are
seen as transition costs which has to be covered by a (special) OU
budget line. These costs comprise for example parallel lines etc.
It must be possible to cancel lines at the shortest possible time;
i.e. Ebone backbone and access lines have to be based on contracts
for an initial period of at most one year with a cancellation
period afterwards of at most three months.
7. Clearing of Costs
Based on the cost allocation scheme in Annex 1 the OU will invoice
in advance on a quarterly basis the Ebone customers for who the
tariff is higher than the total of accepted costs. The OU will
reimburse in the second month of the actual quarter the Ebone
customers for who the tariff is lower than the total of the
accepted costs. Based on this clearing method the working capital
needed by the OU to accept the commercial responsibility for the
Ebone services will not exceed 200 KECU.

Annex 1  Operational Unit Ebone Cost Analysis 1993 (in ECU)

1. Assumptions

1.1 Backbone:

Status 	Link			Speed	Real 	Accept.	Covered by:
Aug. 92 				costs	costs
Operat.	Stockholm-Amsterdam	512	275000	275000	NORDUnet
Operat.	Amsterdam-Geneva	512	270000	270000	SURFnet
Operat.	Geneva-Montpellier	256	141000	141000	RENATER	
On ordr	Montpellier-London	256	147000	147000	RENATER
Operat.	London-Stockholm	256	178000	178000	NORDUnet
100% of real costs will be accepted.
Total accepted costs backbone:			1011000
1.2 Gateways:

	Status	Location	Speed	Real	Accepted	Covered by:
					costs	costs
	Planned	EMPP-London	256	0	100000		JANET
	Planned	EMPP-Amsterdam	256	N/A	0		PTT/Telecom
	Operat.	HEPnet-Geneva	512	N/A	0		CERN
100% of the (virtual) gateway costs EMPP London will be accepted.
Gateway costs EMPP Amsterdam will be carried by EMPP.
Gateway costs HEPnet CERN will be carried by CERN. HEPnet is for 1993 accepted 
as a peer connection to Ebone.
Total accepted costs gateways:			100000
1.3 Access lines:

Status	Link			Speed	Real	Accept.	Covered by:
Aug. 92					costs 	costs
Operat.	Amsterdam Madrid	64	 82700	 62025	Rediris
On ordr	Amsterdam Munich	128	 98600	 73950	ECRC
On ordr	Amsterdam Vienna	128	107600	 80700	ACOnet
Unknown	Geneva-Athens		64	 80000	 60000	ARIANEt
Operat.	Geneva-Tel Aviv (*)	64	 40725	 40725	ILAN
On ordr	Geneva-Vienna		256	182500	136875	ACOnet
Operat.	Montpellier-Crete	9.6	 42600	 31950	GREARN
Operat.	Montpellier-Leuven	64	 44200	 33150	Univ.Leuven
75% of costs will be accepted; 25% is regarded as local loop.
(*) Tel Aviv half channel European side is 100% accepted.
Total accepted costs access lines:		519375
1.4 Equipment:

There are at present four Ebone Boundary Systems (EBS) plus one at CERN.
Investments per EBS are 30000; depreciation in 4 years; maintenance 10% per 
Costs local equipment CERN will be carried by CERN.
Accepted depreciation costs:  30000 p/a
Accepted maintenance costs:   12000 p/a
Depreciation costs and maintenance costs are at present covered by several 
1.5 Staff:

Central staff:        2  fte, 50000/fte.  Costs 100000 covered by NORDUnet.
Local staff per EBS: .25 fte, 50000/fte.  Costs 37500 covered by EBS sites.
100% operational staff costs will be accepted but local staff CERN 
will be carried by CERN.
Total accepted costs staff:	137500
2 Requested services

2.1 Relative weights access speeds:
	speed	access points
	9.6	0.5
	64	1
	128	1.8
	256	3.5
	512	6
	1000	8
	2000	11.4
2.2 Present customer demand:
	Customer	access 1993	points	status
	NORDUnet	512		6	OK
	SURFnet		512		6	OK
	JANET		256		3.5	?
	RENATER		256		3.5	OK
	EARN		64		1	?
	EUnet		64		1	?
	ACOnet		128		1.8	?
	ACOnet		256		3.5	?
	Rediris		64		1	OK upgrade planned
	Un.Leuven	64		1	?
	GREARN		9.6		0.5	?
	ILAN		64		1	?
	ECRC		128		1.8	OK
	SWITCH		256		3.5	?
	Total points			36.1
3. Costs

Accepted costs:
Backbone lines		1011000
Gateways		100000
Access lines		519375
Equipment		42000
Central staff		100000
Local staff		37500
Total accepted costs:	1809875
Total accesspoints	36.1
Costs per accesspoint:	50135

4. Tariffs
Proposed tariff 1993:
Customer 	tariff 93 	minus accepted costs		to pay:
	   	per annum	backb./	access	equipm./	
				gateway	lines	staff
NORDUnet	300810		453000		110500		-262690
SURFnet		300810		270000	 	 44000		 -13190
JANET		175473		100000		 12500	 	  62973
RENATER		175473		288000		 12500		-125027
EARN		 50135						  50135
EUnet		 50135						  50135
ACOnet		 90243			 80700			   9543
ACOnet		175473			136875			  38598
Rediris		 50135			 62025			 -11890
Un.Leuven	 50135			 33150			  16985
GREARN		 25068			 31950			  -6882
ILAN		 50135			 40725			   9410
ECRC		 90243			 73950			  16293
ARIADNE		 50135			 60000			  -9865
SWITCH		175473						 175473
total		1809875		1111000	519375	179500		      0

Annex 2: Statement EBONE MC

The Operational Unit Steering Committee received in July 1992 the
following message from the Ebone Management Committee:
" The Ebone MC has addressed the continuation of the Ebone '92 IP
service for 1993. Ebone MC has noted the plans and progress in
setting up the OU and the OU's intention to provide a pan-European
multi-protocol backbone service. Ebone MC has concluded that to be
able to secure a proper continuation of IP backbone services in
Europe it will be necessary to continue the current IP services at
least until mid 1993. The Ebone MC is keen on optimising the
transition process from the current situation to a single
pan-European multi-protocol backbone service and on minimising the
organisational overhead involved. Therefore, the Ebone MC offers to
propose to the Ebone participants that the Operational Unit takes
up full organisational and commercial control over the Ebone '93 IP
services as soon as possible. This proposal is conditional to the
OU being prepared to continue the operation of the Ebone IP
technical infrastructure until the intended MPBS has demonstrated
its operational capabilities to replace it."

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