connect communicate collaborate GEANT Cost Sharing and Pricing Models John Chevers Chief Business Development Officer GÉANT Ltd

connect communicate collaborate Core Principles of Cost Sharing Some important aims…. Recover costs Ensure fairness Address the digital divide Not-for-profit But also…. Provide transparency Be simple to understand (!) and use Provide budgetary stability Encourage use of the network

connect communicate collaborate Costs to recover GÉANT expenditure: Fibre leases Circuit leases Routing equipment Optical equipment Space & power Operational manpower Overheads

connect communicate collaborate GEANT Cost Sharing between NRENs GÉANT Services IP Annual subscription includes VPNs, L2 circuits, peering, global transit Lambda Per-service pricing Additional Items Commodity IP (commercial internet) GÉANT Open etc

connect communicate collaborate How an NRENs GÉANT subscription is calculated Subscription Calculation Cost sharing model devised by cost-sharing working group Based on: Access bandwidth GDP Local costs Adjustments for unusual circumstances EC Subsidy GEANT is co-funded by EC and NRENs NRENs receive 43% EC subsidy on all GEANT services Subscription Table Shared openly in consortium Agreed by NREN Assembly

connect communicate collaborate GEANT Lambda Pricing Previously... Fixed pricing across Europe Helped address digital divide Increasingly uncompetitive in Western Europe New model (2013)... Based on market value of circuits Assessed by Telegeography EC subsidy applied (43%) Result should prove good value anywhere in Europe If not –please tell us why not!

connect communicate collaborate NREN Cost Models Cost models vary by country: Government funding/subsidy Local telecoms market Geography Demand Resulting NREN charges: Usually include a range of services (Internet access etc) Typically include GEANT cost GEANT can help you to work with multiple NRENs Coordinate multi domain technical solution Coordinate pricing Strategy proposes a one-stop shop for services

connect communicate collaborate Summary GÉANT has an agreed mechanism to share costs Sustainable (20 years +) Based on agreed principles and requires solidarity NRENs are different organisations -National budgets and costs vary -National service offerings vary -GÉANT can help to provide clarity on multi-domain solutions

connect communicate collaborate For Input How should costs be structured for your project/organisation? How should a one-stop-shop work? Are there procurement issues to be resolved?