1. Projected impact of rate based billing on Wide Area Network use at Cornell

2. Background Expediential Growth
Predictions of $50 Million/Y Wide Area Network Bills within 10 Years
Poor Network Service
Current Demand Driven by P2P
History of Charging for Network Services

4. Actions To Date Long Term - Working on Lowering “upstate” WAN Costs
“Forced” to Install Packeteer
Cost ~ $30¸000
Resolved Short Term Problem
However Not Cornell’s Strategic Direction

5. Bill by the Drink Will Address Over Consumption of a “Free Good”
Concern About Content Control
Violation of Cornell Policy
Scalable Funding
Fair Cost Allocation
Improved Service

6. Network Fee Areas
3 Cost Areas
Edge
Backbone
WAN

7. WAN Billing Detail Base Fee of $4 / Month for up to 2 GB
~90% of users fall under this threshold
$.003 per each MB over 2 GB Base
All Accounts Will be Billed
Students
Faculty
Staff
Both I2 and Commodity

8. Sample Bill

9. Administrative & Faculty Feedback
The "Top 300" administrative and academic users transferred 61% of academic and administrative data volume.
Asked how their behavior would change under new billing model …

12. Student Use and Feedback
Student consumption represents 70% of total WAN usage.
35% of students consume 95% of total student WAN use
Office of Communication and Marketing Services
Focus Groups
Pizza
$25

13. Student Feedback
There is virtually unanimous agreement that ResNet subscribers will change their habits under the new billing model
Students anticipate that as they reach the level of WAN use that begins incurring a marginal cost, they will not be willing to pay for additional access. Their attitude seems to parallel anecdotal evidence of the Internet industry —

14. Student Feedback
Expect Cornell students to pool and share data files rather than individually reaching out to the Internet and downloading files.
They worry about accidentally exceeding the base $4 limit.
Privacy Concerns

15. 2000MB will cover 99% of Academic/Admin and 80% of students
Forcast
2000MB will cover 99% of Academic/Admin and 80% of students

16. Forecast
The feedback from 38 administrators representing some of the top 300 academic and administrative WAN users suggests that under the new billing model data volume transferred by the large users is likely to decrease by 70%
Based on students input it is estimated that their consumption will drop by 75%
These findings are consistent with empirical evidence from a similar study (Berkeley INDEX Project) which shows that 75% of users managed their needs within basic service charges rather than paying extra for premium services
With introduction of new rate structure the composite of students, academic, and administrative WAN consumption is likely to drop by 72% in FY04

17. Final Thoughts Dropped 2 OC3’s from 04 Budget
Expect Savings to Easily Offset Development
Will Use Packet Shaping to Smooth Student Use at Start of Semesters
Security Value
Time Will Tell …