1. FUNDING MODELS Jan Gruntorád CESNET, Czech Republic jg@cesnet.cz NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

2. CONTENT FUNDING CONCEPTS CENTRAL FUNDING USER FUNDING POSSIBLE MODELS OF USER FUNDING CESNET EXAMPLE CONCLUSIONS - RECCOMENDATIONS NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

3. FUNDING CONCEPS: EXTERNAL SOURCES CENTRAL USER BASED COMBINATION NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

4. EXTERNAL SOURCES INFRASTRUCTURE ESTABLISHEMENT SEED MONEY ONLY (TO START THE EVOLUTION) POSSIBLE SOURCES (NATO, OSI, EU,..) NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

5. CENTRAL FUNDING ADVANTAGES A GOOD OVERVIEW OF TOTAL COST AWARNES AND RESPONSIBILITY OF THE GOVERNMENT TOWARDS RESEARCH NETWORKING AVOIDS COMPLICATED ADMINISTRATION NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

6. CENTRAL FUNDING DISADVANTAGES END USERS WILL BE WASTEFUL SINCE SERVICE IS FREE-OF-CHARGE NO GUARANTEE THAT SERVICES ARE MATCHING USER NEEDS CONTINUITY OF NETWORKING SERVICES DEPENDS ON POLITIC SITUATION NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

7. USER FUNDING ADVANTAGES AWARNESS OF THE REAL COSTS BY THE INSTITUTIONS STRONGER INFLUENCE ON THE SERVICES COMPETITIVE SITUATION FOR THE NRENS INSTITUTIONS CAN SET PRIORITIES ON NETWORKING AND OTHER EXPENDITURE NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

8. USER FUNDING DISADVANTAGES DIFFICULT TO DEVELOP A FAIR MODEL FOR COST SHARING NO MONEY AVAILABLE FOR INNOVATION SHORT-TERM THINKING AND RISC OF UNDERSPENDING ON NETWORKING NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

9. EXAMPLES OF FUNDING MODELS PORTUGAL: 50% GOVERNMENT, 50% INSTITUTIONS AUSTRIA: cca 90% GOVERNMENT, 10% INSTITUTIONS DENMARK: cca 80% GOVERNMENT,20% INSTITUTIONS CZECH REP.: 73% GOVERNMENT, 27% INSTITUTIONS NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

10. USER CHARGING BASED ON ACCESS SPEED (C) INCOMMING TRAFFIC (VOLUME) (B) BUDGET OF ORGANIZATION (A) CESNET IN 2002 90% (A), 5% (B), 5% ( C) NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

11. EVOLUTION OF CESNET 1990 – EARN INTRODUCED TO CZECHOSLOVAKIA AND RUN BY CZECH TECHNICAL UNIVERSITY IN PRAGUE 1991 – INTERNET CONNECTION OVER 9,6 KBPS LINKS TO UNIVERSITY OF LINZ, AUSTRIA 1992 – GRANT FOR BUILDING COUNTRY-WIDE IP NETWORK FOR CZECH UNIVERSITIES (20 mil. KČ – CZECH MINISTRY OF EDUCATION) 1993 – CESNET NETWORK (64 KBPS BACKBONE) IN 9 CITIES OPERATIONAL (RUN BY CZECH TECHNICAL UNIVERSITY IN PRAGUE) - CESNET ADVISORY BOARD NOMINATED BY THE CZECH MINISTRY OF EDUCATION NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

12. 1994 – SERVICES PROVIDED ALSO TO OTHER ORGANIZATIONS THAN R&E COMMERCIAL ACTIVITIES WHY WERE STARTED? - DEMAND FOR SERVICES FROM OUTSIDE ACADEMIC COMMUNITY - NO „STABILE“ FUNDING AVAILABLE - HAVE „REASONABLE“ SALARY LEVEL TO KEEP SKILLED STAFF NEGATIVE IMPACT - BANDWIDTH PROVIDERS CONSIDER NRN AS COMPETITOR NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

13. 1995 – CZECH MINISTRY OF EDUCATION TERMINATES FUNDING OF THE CESNET NETWORK 1996 – CREATION OF CESNET, ASSOCIATION OF LEGAL ENTITIES - TENDER FOR IMPLEMENTATION OF THE TEN-34 CZ NETWORK AND PILOT APPLICATIONS - START OF THE TEN-34 CZ PROGRAMME (1996-1998) - 550 MIL. KČ (GOVERNMENT BOARD FOR RESEARCH AND DEVELOPMENT, CZECH MINISTRY OF EDUCATION) REASONS: - END OF CENTRAL (MINISTRY) FUNDING, UNIVERSITIES HAD TO PAY FOR SERVICES - DECISION MAKING PROCES - PROJECT TEN-34 CZ NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

14. 1997 – TEN-34 CZ NETWORK (34 MBPS BACKBONE) IN 9 CITIES OPERATIONAL - START OF MIGRATION OF THE R&E USERS FROM CESNET NETWORK TO TEN-34 CZ 1998 – PART OF BACKBONE UPGRADED TO 155 MBPS - MIGRATION OF THE R&E USERS TO TEN-34 CZ COMPLETED - CESNET NETWORK COMMERCIAL ISP 1999 – CONTRACT WITH CZECH MINISTRY OF EDUCATION (GOVERNMENT BOARD FOR RESEARCH AND DEVELOPMENT) FOR 5 YEARS (1999-2003) SUPPORT OF „HIGH SPEED NETWORK FOR NATIONAL RESEARCH AND ITS NEW APPLICATIONS“ - PREPARATION OF STRATEGIC PARTNERSHIP (SELLING) OF THE CESNET NETWORK NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

15. 2000 – CESNET NETWORK SOLD TO CONTACTEL ONLY INTEREST FROM THE MONEY EARNED IS USED FOR NEW PROJECTS – OPEN FUND CESNET ASSOCIATION JOIN GÉANT START OF ESTABLISHMENT OF CESNET2 GIGABIT NATIONAL BACKBONE 2001 – CESNET2 GIGABIT NETWORK IN OPERATION GÉANT INTERNATIONAL CIRCUITS DELIVERED IN NOVEMBER CZECH REPUBLIC IS INCLUDED IN THE 10Gb/s CORE NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

16. NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

17. CESNET FUNDING SOURCES GOVERNMENT BOARD FOR RESEARCH AND DEVELOPMENT CESNET MEMBERS (UNIVERSITIES AND ACADEMY OF SCIENCES) CONNECTED ORGANIZATIONS OPEN FUND SINGLE-PURPOSE FUND BUSINESS FUND EU (GÉANT,…..) NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

18. CONCLUSIONS BEST APPROACH TO SUSTAINABILITY IS DIVERSIFICATION OF FUNDING RESOURCES (MULTI – SOURCES FUNDING) NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

19. RECCOMENDATIONS EVERY COUNTRY HAS SPECIFIC SITUATION AIM FOR MULTY-SOURCE FUNDING INTRODUCE SOME FORM OF USER CHARGING PUT GREAT EFFORT TO P.R. ACTIVITIES CONVINCE SUPPLYER TO GIVE YOU „SPECIAL“ CONDITIONS ACTIVELY LOOK FOR EXTERNAL SUPPORT NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002

20. THANK YOU FOR ATTENTION NATO ANW:The Third CEENet Workshop on Network Management Zagreb, SEPTEMBER 22-25,2002