1. How the Internet is Funded I590 Presentation Matt Hottell 9/30/03

2. Funding the Physical Infrastructure There have been 3 main phases in the funding of the Internet in the US ARPA phase 1969-1990 NSF phase1990-1995 Commercial phase 1995-present

3. ARPA Phase Starting in 1969, the DoD funded the early growth of the Internet by supporting the ARPANet. ARPANet traffic was supposed to be limited to defense and research purposes only By the middle of the 1980s other players started to build around the ARPAnet

4. ARPA Phase 1984: NSF starts contracting for the building of a national backbone (56kbps) that connects research universities. At this time, other government agencies, and some commercial agencies and academic institutions begin building regional networks

5. ARPA Phase The NSF Acceptable Use Policy through the end of the 1980s limited some uses of the Internet by commercial interests

6. ARPA Phase By the end of the 1980s, the ARPANet was no longer the core of the Internet in the US In 1990, ARPA decommissioned the ARPANet

7. NSF Phase By 1990, the NSF is the dominant backbone internet provider In 1990, the acceptable use policy is relaxed, allowing more commercial use. November, 1990 – first WWW page The first Commercial Exchange Point (CIX) is established in 1991

8. NSF Phase In 1994, NSF awarded contracts to replace and manage its backbone network

9. NSF Phase In 1994, NSF awarded contracts to replace and manage its backbone network Part of the replacement includes 4 Network Access Points (NAP) to be built by the four baby Bells San Francisco, Chicago, New York, DC

10. NSF Phase In 1995, NSF decides that the commercialization of the Internet has caused it to grow beyond the research scope of the NSF mission

11. NSF Phase In 1995, NSF decides that the commercialization of the Internet has caused it to grow beyond the research scope of the NSF mission The NSF completely turns over its backbone to the baby Bells to run as commercial ventures

12. Commercial Phase Starting in 1995, the funding for the physical Internet became a mostly commercial venture

13. Commercial Phase Starting in 1995, the funding for the physical Internet has become a mostly commercial venture However, in 1997 NSF approved funding for a new high-speed research network – Internet 2

14. Internet Architecture The high-speed backbones form the core of the network. Qwest, MCI, Sprint, ATT,etc

15. Internet Architecture The high-speed backbones form the core of the network. Qwest, MCI, Sprint, ATT,etc Backbones have access points in major cities

16. Internet Architecture The high-speed backbones form the core of the network. Qwest, MCI, Sprint, ATT,etc Backbones have access points in major cities Backbones (vBNS) interconnect with each other at NAPs, allowing regional networks to talk to each other.

17. Internet Architecture The companies that operate the NAPs charge the NSPs for access to the rest of the network. IU has a direct connection to the Chicago NAP

18. Internet Architecture Network Service Providers are service providers who operate backbones

19. Internet Architecture Network Service Providers are service providers who operate backbones Internet Service Providers pay NSPs for access to the NAPs

20. Internet Architecture Network Service Providers are service providers who operate backbones Internet Service Providers pay NSPs for access to the NAPs There may be several layers of ISPs

21. Internet Architecture Network Service Providers are service providers who operate backbones Internet Service Providers pay NSPs for access to the NAPs There may be several layers of ISPs P4 in a closet vs AOL modem banks

22. Internet Architecture Many NSPs and ISPs have smaller connections to each other in major cities. These connections are called Metropolitan Area Exchanges

23. Peering ISPs at the same level generally agree to forward each others messages without charging. This contributes to the idea of a free internet

24. Money Flow The system of machines and cables that carry the internet at each level are paid for by the level of subscribers below. Money flow matches the flow of datagrams to the NAPs