The CUDI and CLARA funding models Carlos Casas ú s Director General CUDI Vice Chair CLARA

2 National Research and Education Networks (NREN’s). Main Characteristics One network per country, in order to achieve economies of scale Individual efforts to connect to other NREN’s are more expensive than connecting through the National Network. Those institutions that want to connect on their own pay significantly more to connect. Other NREN’s give the national network the right to be the exclusive international connection. This reinforces its power to agglomerate all institutions that want international connectivity. The network is open to any educational or research institution that would like to connect. This increases its purchasing power and its economies of scale

3 The government funded NREN Many developed countries have developed their NREN with extensive government funding The NREN becomes a government controlled institution (i.e.: Brazil, Spain)

4 The Mexican case… A few leading universities wanted to connect individually to Internet 2. Internet 2 refused to connect each university individually, and suggested the formation of a National Network. Government was unwilling to provide funding. The seven universities agreed to share the cost of running the network on a pro-rata basis. By aggregating the purchasing power of these seven universities, they were able to negotiate extremely favorable conditions from Mexican telecommunications carriers. The project's management was able to assemble universities, carriers, educational authorities and international NREN’s into a project of national impact.

5 What putting their purchasing power together gave Mexican universities Telmex, the incumbent telecommunications carrier of Mexico, saw a business opportunity in serving the association of universities. It decided to donate 4,000 kilometers of 155 Mbps backbone. The network covers the 3 main cities and 2 links to the United States México Guadalajara Monterrey To CENIC Telmex Backbone 155 Mb/s Cd Juárez Tijuana

6 Telmex donated the backbone for more than altruistic reasons (cont…) The CUDI network represents a test bed for new network technologies. IPv6, MPLS, high capacity VPN’s and VOIP have been tested intensely on the CUDI network before commercial deployment. In order to operate the networks universities train significant numbers of students and technical personnel, that will demand and operate high capacity networks when they live the university and enter their professional lives. Telmex uses the network to demonstrate the capabilities of new technologies, like multiple videoconferencing, high capacity VPN’s and VOIP. The network is a very successful public relations effort. Students and society become aware of Telmex’s efforts in support of higher education and research.

7 Telmex donated the backbone for more than altruistic reasons Like many other telecommunications carriers, Telmex has underutilized interurban fiber capacity. Telmex could donate the backbone without incurring into any additional out of pocket expenses. Universities have to pay for links into the backbone. This has created a significant market that did not exist before. Universities constitute a growing telecommunications market. Telmex uses the CUDI network to sell additional products to the university market: local and long distance services, telecomm equipment, commercial Internet, hosting, PC’s, broadband connections to teachers and students, etc.

8 Avantel’s participation (MCI-Banamex) To be able to compete in the university market, Avantel, the main competitor to Telmex, decided to make an equivalent donation to the CUDI network.

9 Cancun Tijuana A SDSC Cd. Juárez Reynosa A HOUSTON vBNS A UTEP México Guadalajara Monterrey 155Mbs Telmex 155Mbs Avantel With the Avantel donation the network now has 8,000 kilometers of 155 Mbps links

10 Costs to the universities Depending on their level of commitment, universities pay: A $5,000 dollar enrolment fee A $5,000 dollar yearly membership fee The cost of their connection to the backbone ($1,000 per month for an E1 connection in the main cities)

11 Membership More than 105 institutions That comprise: 70% of higher education enrollment 1.3 million students 120,000 computers with access 90% of researchers in the National research System

12 Financial results Have been able to build dark fiber border crossings into the United States Pay membership fees in the CLARA network Build close to 1 million dollars in reserves

© 2003 – RNP The CLARA model

14 Brief Story of Networking in Latin America Political, linguistic and cultural considerations have traditionally led to considerable interaction between countries within the region However, networking has slow to the develop because of lack of telecommunications infrastructure in the continent First connections (BITNET) starting 1986 using satellite links between the US and each country separately Same topology inherited with transition to Internet Even multilateral initiatives (RedHUCyT in mid 90s and AMPATH from 2001) have used direct links to traffic hubs in the US.

15 Point to point connectivity is expensive and inneficient.You need a network. It is a “regional public good”

16 Regional educational networking depends on the availability of infrastructure Until very recently, the only available telecom infrastructure for data communication was by satellite cost independent of distance no incentive for establishing links within the region, as all countries were mainly interested in access to global Internet Recent important changes (since late 1990s): end of state telecom monopoly in many countries competition and lower prices building out of new infrastructure based on submarine fibre optical cables

17 New Submarine Cables in Latin America Panamerican Global Crossing & Emergia ImpSat Transandino UniSur Global Crossing

18 New cables in the Carribean (Maya & Arcos) Maya Arcos

19 AmPath Internet2 Connectivity in Latin America before CLARA AmPath (FIU+GX) uses Global Crossing cables connects AR, BR (2), CL 45 Mbps all connections are point to point from Miami Mexico cross-border connections to USA (TX and CA)

20 Development of Latin American NRENs Established education and research networks: With dedicated Internet2 connections: Argentina, Brazil, Chile, Mexico With limited int’l connectivity: Costa Rica, Cuba, Uruguay, Venezuela Education and research networks in formation (present nat’l/int’l connectivity through commercial ISPs) Bolivia, Colombia, Ecuador, Guatemala, Panama, Peru, Paraguay, El Salvador, Nicaragua, Honduras, Dominican Republic, Haiti, rest of Caribbean

21 AMPATH´s achievements Initial boost for Advanced Networking in LA Stimulus for advanced connectivity inside each country Motivation for collaborative projects Connectivity needs, delayed till now due to high costs, being solved

22 New European Initiative Alliance for the Information Society ( ) A proposal out of EU-LA heads of state summit held in Madrid 62.5 Million Euros for EU-LA on Information Society Issues 10 Million Euros for Interconnecting Europe & Latin American Researchers Connected LA countries required to contribute 20% of project cost

23 CAESAR: Connecting All European and South American Researchers. European initiative to prepare for program Promote EU-LA connectivity through regional connectivity within LA plus a large pipe to Europe CAESAR Workshop 2002 in Toledo became starting point for CLARA cooperative organisation for advanced networking in LA A “regional network”: feasibility study showed budget of 12.5 million euros was sufficient to establish advanced connectivity to all LA countries for 3 years. Way lower costs than point to point connectivity.

24 CLARA features Cooperacion Latino-Americana de Redes Avanzadas Non profit association of NRENs from LA. Open to all LA Countries One NREN per country. Backed by each government Incorporated in Uruguay CLARA is not limited time scale and restrictions Will connect LA to Europe and to other regions

25 CLARA Members ArgentinaRETINAOperational BrazilRNPOperational BoliviaBOLNET (ADSIB)Operational ColombiaRAC In deployment Costa RicaCRNetOperational CubaRedUnivOperational ChileREUNAOperational EcuadorCEDIAOperational El SalvadorRAICESIn deployment GuatemalaRAGIEOperational HondurasRHUTAIn deployment MexicoCUDIOperational NicaraguaRENIEOperational PanamáRedCytIn deployment ParaguayRedUNAIn deployment PerúRAAPOperational UruguayRAUOperational VenezuelaREACCIUNOperational

26 CLARA Activities May 2002: Interconnection Initiative Launched June 2002: EU-LA Meeting in Toledo. Toledo Statement signed. July 2002: LA Networking Initiatives meet in Rio. CLARA agreement established. June 2003: Clara meeting Mexico. Bylaws signed

27 Legal Form and Registration Non for profit organization Legal form: Civil International Association under the laws of La República Oriental del Uruguay Legal registration documentation completed in June 2003 Functionally operative in July 2003

28 The Clara Organization General Assembly Board of Directors Executive Director Accounting Public RelationsOperations (NOC) Engineering (NEG)

29 Backbone Timetable Project ALICE - América Latina Interconecta Con Europa February 2003: technical definitions complete March 2003: Open tender for provisioning of links and equipment June 2003: Contract(s) assigned September/October 2004: Continental ring established Notes: DANTE is the project coordinator and will sign contracts with users and providers CLARA is expected to represent interests of LA users in the medium term (one year)

30 RedCLARA topology. Connectivity to the US is made possible by Western Hemisphere Research and Education Network (WHREN), funded by NSF GEANT Internet 2

31 Sustainability… From the point of view of the EU it has been a very successful project. Second round funding has been committed Eventually countries have to assume financial responsibility for funding Regional financial institutions can help organize the business plan and sell the project to governments. Huge social rates of return Regional carriers (Telmex, Global Crossing) have an strategic interest in regional networks and will provide very attractive conditions

32 Comments about CLARA CLARA responds to long-standing need for coordination between LA NRENs. Takes advantage of Heads of State Summit. It was on the agenda Builds on trust-building already carried out between major partners Offers support for NREN building in other less developed LA countries

33 http//:

34 Web resources on the Mexican case A full description of the Mexican case can be found at The Bylaws of CUDI can be found at We now will discuss the most relevant aspects of the Mexican model

35 Why Mexican Universities are willing to invest in neworking technologies Demographic growth in Mexico has produced increasing demand for university education. Leading Mexican universities have realized that the most efficient way to increase their educational offer is by using information technologies for distance learning, electronic libraries, shared laboratories, grids, collaborative research efforts and joint teaching programs (through videoconferencing) Leading Mexican universities sought to connect individually with Internet 2 in the United States. However, UCAID suggested the creation of a national network, rather than connecting each university through an individual link. Seven leading Mexican Universities decided to create a National high capacity network. To operate the project they decided to form a non- profit corporation (Corporación Universitaria para el Desarrollo de Internet, A.C.)

36 Why Mexican Universities are willing to invest in neworking technologies (cont…) These universities committed to pay, on a pro rata basis, the cost of operating the network. This commitment gave the Mexican network financial viability. This commitment started a virtuous circle, because soon, other universities and research centers decided to join the corporation. This reinforced the purchasing power of CUDI. CUDI is open to any academic and research institution that abides by the corporate bylaws. CUDI was granted the exclusive right to connect to other international NREN’s, which again reinforced its purchasing power.

37 Institutional leadership CUDI management was able to garner the support of university authorities, education government authorities, telecom suppliers and international NREN’s into a project of national relevance. The President of Mexico invited all university Presidents to the CUDI inauguration ceremony in the official residence. This gave visibility and support to the project.