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Re: A Ridiculous Failure of Critical Infrastructure

From: Dave Farber <dave () farber net>
Date: Wed, 2 Dec 2009 14:40:08 -0500




Begin forwarded message:


From: Sid Karin <skarin () ucsd edu>
Date: December 2, 2009 2:32:42 PM EST
To: dave () farber net
Subject: [IP] Re:    A Ridiculous Failure of Critical Infrastructure




Dave,   (for IP)

A few relevant historical details:

The NSF established the Supercomputer Centers program in 1983
and the first centers opened their doors in 1985.  A result of the
contract (actually Cooperative Agreement)  negotiations, the centers
were encouraged (read: required) to find additional funds from other
sources to help support their operations.    We turned to industrial
partners as well as state government, etc.

The industrial partners required access to the centers and this was
originally via the NSFnet.  Soon the industrial partners wanted more
than just access to the center's resources for research purposes.
That is, they wanted more than what was permitted under the
acceptable use policy aimed at restricting use to non proprietary
research activities.
The first regional networks were established by NSF in 1987 with planned 
funding phase out over a period of a few years.  During that time
the regional networks began, with NSF's blessing, to successfully
seek industrial customers. Shortly thereafter the regionals established 
a number of exchange points so that, at least in principle, commercial
traffic could reach all points on the network without using the
(restricted to research) NSFnet backbone.  How the traffic was
actually routed is another story.  Individual consumer access began
at about the same time, with the regionals selling dial up access to
whoever wanted it.

All this was in place and functioning by about the end of 1987 or
early 1988.  At least some of the regionals were cash flow positive,
even fully profitable (*not* counting the declining NSF subsidy),
well in advance of December 1991 when the Gore bill was passed.

   Cheers,

       ......Sid







From: Lee W McKnight <lmcknigh () syr edu>
Date: December 2, 2009 11:24:36 AM EST
To: "dave () farber net" <dave () farber net>, ip <ip () v2 listbox com>
Subject: RE: [IP] : A Ridiculous Failure of Critical Infrastructure

Dave,

For IP if you wish:
To clarify the historical record: it didn't matter what NSF thought might happen post-commercialization, even if its mandate is broader than Shane implies, ie including applied research which might contribute to growth of new (science-based) industrial sectors.
It was Congress (the famous Gore Bill) which mandated commercialization. 

NSF was just following Congressional (and Presidential) orders.
The Gore Bill of 1990 said the Internet would be commercial/NSF's subsidy to backbone would stop April 1, 1995; and it did.
The bipartisan compromise of 1990 was NSF could pump $1bn into the backbone, over 5 years, ie $200m/yr; and then it was up to industry to carry the net forward. 

Lee McKnight
PS: To all those out there who have been laughing at poor Al for having said something along lines of claiming he contributed to creating the (commercial) Internet: guess what: he did. 


________________________________________
From: Dave Farber [dave () farber net]
Sent: Wednesday, December 02, 2009 10:35 AM
To: ip
Subject: [IP] : A Ridiculous Failure of Critical Infrastructure

Begin forwarded message:
From: Shane Greenstein <greenstein () KELLOGG NORTHWESTERN EDU<mailto:greenstein () KELLOGG NORTHWESTERN EDU >> 
Date: December 2, 2009 9:44:48 AM EST
To: <mailto:CYBERTELECOM-L () LISTSERV AOL COM> CYBERTELECOM-L () LISTSERV AOL COM <mailto:CYBERTELECOM-L () LISTSERV AOL COM> 
Subject: Re: A Ridiculous Failure of Critical Infrastructure
Reply-To: Telecom Regulation & the Internet <CYBERTELECOM-L () LISTSERV AOL COM <mailto:CYBERTELECOM-L () LISTSERV AOL COM>>
Bob Cannon raises an interesting nuance about the history of the Internet. He is right that about ownership -- there is no particular reason why the government or private industry should own it. The military is perfectly capable of running its own Internet, for example, just as are private firms. Indeed, the Internet began its life as a military network. That is true. But one nuance is missing from his historical response below. There is a common after- the-fact reasoning about why the NSF gave the Internet backbone to private industry, and it is misleading. 

Let's be clear about three things:
First, by the time the NSF walked away from the Internet the network had a very decentralized operational structure. Even during the research days, the NSF only managed the backbone, while regional cooperatives managed the regional networks, and thousands of universities and research labs managed their own networks. This happened for simple budgetary reasons; the NSF did not have a budget to run the whole thing. In short, it was possible for the NSF to privatize the Internet because, in fact, most of the assets already were privatized, owned and operated by others. It was nothing sacred about private enterprise that mattered, just simple budgetary facts on the ground.
Second, NSF is not allowed to start new industries. That is outside its charter, which only pertains to supporting basic research in the US. And talk to any NSF administrator. While they are proud of their role in developing the Internet, they are very precise about their surprise at the economic impact of the NSF privatization. They were not trying to start a new industry or a new economic revolution built around it. Indeed, to aspire to that in any way shape or form would have been outside their charter, and would have led to massive Congressional investigation. They were supporting basic research, and sometimes it leads to new stuff in private industry, but the latter is outside what they are allowed to influence.
Third, Steve Wolf (the primary administrator for the backbone) is very up front about why he thought privatization was a good idea. For one, the technology was refined enough so that any engineer could operate it; and for two, he forecast that sharing the technology with private users would increase scale of use, which would bring down costs, and the research community could benefit from the lower costs. It is a small point, but crucial. Private industry could supply both government and private users in 1995, but government could not. In the decentralized structure of the mid 1990s, there was no other option for achieving that scale other than privatization.
So, while it is nice to talk about ownership of the Internet by public entities and private entities in the abstract, we should recognize what part of that abstract debate actually mattered for historical events. In practice, this was close to a private technology before it officially privatized in the US. And, it is no surprise (to me) that the Internet is a government operation in the countries who adopted later and where the institutions push that way already (such as China). Oh well. So it goes. 

Shane



________________________________________
From: Telecom Regulation & the Internet [CYBERTELECOM- L () LISTSERV AOL COM] On Behalf Of Robert Cannon [rcannon100 () YAHOO COM] 
Sent: Tuesday, December 01, 2009 8:44 PM
To: <mailto:CYBERTELECOM-L () LISTSERV AOL COM> CYBERTELECOM-L () LISTSERV AOL COM <mailto:CYBERTELECOM-L () LISTSERV AOL COM> Subject: Re: [CYBERTEL] A Ridiculous Failure of Critical Infrastructure 

For
sure if "The Internet" was
nationalized (a crazy notion, but China seems to be doing
it OK), then there
would be no need for regulation.
The Internet was a DOD project from 1969 to 1990. Originally a DARPA project, day to day operations were transferred in 1975 to the Defense Communications Agency. In 1983, DOD migrated these networks to TCP/IP.
In 1985, the National Science Foundation stepped in and funded NSFNET. NSFNET ran pursuant to NSF funding and direction until 1995.
NSF originally set up the contracts for the operations of the DNS and IP numbering functions. That authority was transferred to Dept of Commerce NTIA in the late 1990s, which beget ICANN. This authority continues today which it has evolved. 

The Internet was born of USG effort.
But as to the second part, whether regulation would be needed, that is not true either. It depends on the structure and arrangement - there are procurement regulations - there are regs that deal with funding. The postal service faces its own regulatory regimes. Just because something does not fit within title II of the Telecom Act does not mean "its not regulated."
Finally, as a footnote, I would note that all telephone networks including AT&T was nationalized during WWI and were managed by the Post Office. 

The reason The Internet is not a federal
entity is because of who we are.
In the U.S., private enterprise is valued and
cherished.  However, if things
The Internet was a government project for the majority of its existence. Yes, private enterprise is valued, but we need to be careful not to be mythical about the Internet. 

http://www.cybertelecom.org/notes/internet_history.htm

B
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--
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Sidney Karin, Ph.D., P.E.        858-534-5075 (voice)
                                         858-755-5199 (fax)
skarin () ucsd edu Professor Emeritus, 
    Department of Computer Science and Engineering
    Director Emeritus,
    San Diego Supercomputer Center
    University of California, San Diego
    9500 Gilman Drive
    La Jolla,  CA  92093-0505






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