FREE-NET
STRATEGIC AND MARKETING
PLAN
(R643)
Prepared for:
VICTORIA FREE-NET ASSOCIATION
Prepared by:
TELECONSULT LIMITED
#200 - 1100 Melville Street
Vancouver, B.C.
V6E 4A6
Telephone: (604) 684-1144
April 28, 1994
Funded by:
INDUSTRY CANADA
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY. . . . . . . . . . . . . .I
STRATEGIC AND MARKETING PLAN . . . . . . . .1
EVOLUTION OF FREE-NETS . . . . . . . . . . .3
Free-Nets in Canada. . . . . . . . . . . . .3
Current Operational Funding Models . . . . .5
Why are Free-Nets of Interest? . . . . . . .8
KEY CHALLENGES . . . . . . . . . . . . . . .9
Sustainability . . . . . . . . . . . . . . .9
Defining Community Needs . . . . . . . . . 10
Providing Ubiquitous Access. . . . . . . . 10
Scope of Free-Net Services - What is Provided for Free?11
Free-Net Structure - What is Free-Net? . . 12
Commercial Use of Free-Nets. . . . . . . . 13
VISION . . . . . . . . . . . . . . . . . . 14
VALUES FRAMEWORK . . . . . . . . . . . . . 15
FREE-NET DEFINITION. . . . . . . . . . . . 16
FREE-NET BUSINESS MODEL. . . . . . . . . . 17
Provincial Free-Net Organization . . . . . 17
Free-Net Operations Model. . . . . . . . . 21
Services Model . . . . . . . . . . . . . . 23
OUTCOME MANAGEMENT FRAMEWORK . . . . . . . 24
STRATEGIC PRIORITIES . . . . . . . . . . . 25
MARKETING PLAN . . . . . . . . . . . . . . 27
APPENDIX
Executive Summary
This strategic and marketing plan, funded by Industry Canada,
represents the first step in the evolution of Free-Nets from a
grassroots movement into a ubiquitous community service offering
dovetailing with the Canadian Information Highway initiative.
The strategic plan has been compiled from a careful consideration
of Free-Net values, experiences, and stakeholder interviews coupled
with our understanding of technology trends and emerging
telecommunication opportunities.
This plan outlines a vision for the preferred future for Free-
Nets. It distinguishes between the role of the community
Free-Nets while recognizing the need for a strategic
perspective with a regional mandate. The plan is intended to
shift the role for Free-Nets from an ad hoc provider of
services, totally dependent upon goodwill, to one of being an
integral part of Canada’s future communication
infrastructure the Information Highway.
To this end, this plan proposes Community Free-Nets, a multi-
faceted initiative that exploits the potential of community
sponsored hubs to link all citizens to the Information
Highway. The Community Free-Nets initiative aims to develop
the following:
Community Points-of-Presence: a consistent means of providing
local dialling area access to entry level Information Highway
services such as interactive forums, E-mail and database
access.
Community Sponsored Free-Net Associations: Grassroots
organizing groups to tailor these services to community
needs and to provide required support.
Public Domain Tools: Free tools to allow public use of
information services in a user-friendly manner.
Community Information Services: Interactive information and
communication services for the community.
Community Host Computer Systems: Computer system
components for public access terminals and community
resident databases.
The Community Free-Nets initiative is a key building block in
achieving the stated goal of the Information Highway:
Our goal is to build the highest quality, lowest cost
information network in the world in order to give all
Canadians access to the employment, educational,
investment, entertainment, health care and wealth creating
opportunities of the Information Age.
Community Free-Nets provides the last mile that allows all
Canadians access to the Information Highway.
This strategic and marketing plan is intended to serve as a
communications tool for further consultations with key
stakeholders as well as being a draft road map for the
implementation of Community Free-Nets. Proposed changes in
positioning of commercial and community services as well as
funding options can be tested against stakeholder
expectations and revised accordingly. To this end, this
strategic plan and marketing outlines the direction for Free-
Nets, its scope of business services and funding models, and
a strategy for implementation.
Strategic and Marketing Plan
Today, Free-Nets are loosely organized, community-based,
volunteer managed electronic network services. They provide
local and global information sharing and discussion at no
charge to the Free-Net user or patron. Free-Nets are intended
to be community discussion group services which provide
access to public information and public access into the
Internet. They follow a model developed by Tom Grundner
documented in his Blue Book:
A Free-Net can be loosely defined as a grassroots volunteer
organization who recognizes the need for information
services in a community. The organization raises capital to
acquire a computer system and operation funds for
telephone access lines and an Internet connection. The
volunteers then negotiate access to sources of information
that are of interest to the community while supporting use
of the system by the community. In concert, the volunteers
must continue to raise operational funding and constantly
struggle to cope with the incremental demand for new
services.
Community Free-Nets view themselves as local public
services operating under a model similar to public libraries
on public broadcasting systems. The "Free-Net’s
Institution" per se is supported through public funding,
corporate grants and volunteer efforts. This community
independence as well as the public service model, are
strongly held beliefs of the Free-Net organization.
Free-Nets are therefore self regulating in regards to the
range of service provision, as a result of the channel access
limitations, and this is where the community must make its
own definition of the range of services to be provided.
The metaphor of comparison with public libraries is that
libraries do not offer micro-market defined, competitively
positioned, user specific, value-added services to its clients,
but instead offer a broad range of services that the general
public uses on an as-needed basis. As users become more
sophisticated in navigating the Internet and effectively
integrating information provider services into their work,
education, civic and entertainment requirements, they will
use the Free-Net for community forum activities and use
pay-for-service providers and network services for other
purposes. Free-Net will evolve as a network services vehicle
for new entrants and less-privileged users into the world of
the Information Highway and will provide a training
ground for both users and information services providers in
defining requirements and interests.
EVOLUTION OF FREE-NETS
The first Free-Net was established in Cleveland, Ohio in 1986.
Today, Free-Nets are an international organization with 33
sites in four countries. Many communities world-wide are in
the process of developing Free-Net like community access
points to electronic information sources. Free-Nets are run by
voluntary boards who are actively pursuing the delivery of
information technology and network access to a broad base
of users within their communities. In the U.S., the National
Public Telecomputing Network (NPTN) has evolved as the
public lobbying group, national organizing committee, and
policy representative for U.S.-based Free-Nets and contributes
to the planning of world-wide Free-Nets.
Free-Nets in Canada
In Canada, there are at least 80 communities that have
established and are in the process of developing Free-Nets.
Within B.C. alone there are many communities with plans for
imminent operations, including: Fort St. John, Prince George,
Sparwood/Fernie, Squamish/Whistler, and Vancouver and,
as of March 1994, there were also three operating Free-Nets:
Victoria, B.C. 5,500 registered users
Ottawa, Ontario 15,000 registered users
Trail, B.C. 4,500 registered users
All of the Free-Nets provide limited "guest" privileges and
serve an enormous pool of potential patrons in this way.
B.C. Free-Net Association: In B.C., Free-Net communities have
sponsored the B.C. Free-Net Association, formed in January
1994, to champion public electronic communications
networks. The association was formed to:
promote the establishment of Free-Nets in British
Columbia communities;
provide support for existing Free-Net organizations
within British Columbia;
advocate equitable access to electronic information and
network services;
facilitate public education and awareness of the issues
surrounding access to information and network
services.
The organizational structure consists of a representative from
each Free-Net and an elected executive.
One of the stated objectives of the B.C. Free-Net Association
is to develop a province-wide Free-Net strategy that provides
central coordination to reduce the duplication of effort and
administrative and capital overhead. Any group that
provides or is working towards providing free access to
community computer and information services is eligible to
be a member of the B.C. Free-Net Association and is
represented in the association by one person.
Telecommunities Canada: A Canadian Free-Net organization is
in the initiation stage and intends to represent national
interests. Representatives from the National Capital Free-Net
in Ottawa and the Victoria Free-Net are both actively
involved in this process, drawing on their experience as the
first two operational Free-Nets in Canada.
Victoria Free-Net Association (VIFA): Since its inception in
November 1992, VIFA has grown to over 5,500 registered
users (patrons) and to 25 incoming phone lines. Although a
rule of thumb is that one incoming phone line can support
between 200-300 patrons, BC Tel's traffic studies indicate that
150 lines would be needed to cope with the existing demand.
Since November 1992, Victoria has seen the establishment of
at least five commercial Internet service providers as a direct
result of the interest generated by the Free-Net. It is
estimated that approximately 20% of the Free-Net user base
are now commercial Internet users.
Current Operational Funding Models
Today, the community Free-Net associations are very loosely
interconnected. The nature, scope and structure of each
association is based upon both the needs of the community
and the bias/experience of the volunteers. This is reflected by
the range of funding models described in the following
section.
B.C. Free-Net Association: The B.C. Free-Net Association is an
organization that supports and coordinates activities of local
Free-Nets. It does not have technology assets or operations
staff. A proposal has been put forward for a subscription fee
from local Free-Nets to cover administration and potential
advocacy costs. It does not have any current source of
funding.
Victoria Free-Net Association (VIFA): As of early 1994, Victoria
Free-Net had received in kind corporate and individual
donations totalling $70,000, including the donation of one
UNIX computer from SUN Microsystems of Canada and
funding for the provision of telephone lines from BC Tel. The
Free-Net has been able to use the Vancouver Island
Advanced Technology Centre for public enquiries and has
recently been provided with office space through the
generosity of Softwords, a Victoria-based software developer.
VIFA has been actively seeking government grants and has
been negotiating with information providers for service
contracts. The Victoria Free-Net Association operates entirely
on volunteer efforts for systems management and
administrative support services and does not have any
membership fees. Its revenue source is from patron and
supplier donations.
Vancouver Regional Free-Net: Vancouver Regional Free-Net is
due to be operational by June, 1994. It has created a
membership fee structure as follows:
Individual Annual Memberships:
Low Income $15
Single Person $25
Family $40
Non-Profit Organization Annual Memberships $100 -
$300, based on size of organization and ability to pay.
The Vancouver Regional Free-Net is actively seeking grants
for both capital and operating expenses from government
institutions and foundations. The association is working on
an unsolicited proposal to municipalities, where the
municipalities would contribute $0.10 per capita per annum
to the operational support of Free-Net.
The Vancouver Free-Net has received the following
donations: SUN Microsystems has provided a UNIX
computer, Cardinal Technologies has provided 25 modems
and Motorola has provided communications equipment. The
Vancouver Public Library and the Richmond Public Library
have provided office services. The Vancouver Regional Free-
Net is currently working with the University of British
Columbia to obtain physical facilities for network access
equipment and continues to seek broader corporate and
institutional support.
CIAO (Trail Free-Net): The Trail Free-Net was originally
conceived as a wide area network for all of the schools in
School District #11, with connections to the Internet and
received substantial capital funding from the Ministry of
Education. It was expanded to include a broader community
base and became Canada's third operational Free-Net.
Sea-to-Sky Free-Net: An active organizing committee is
working to provide an operational Free-Net for Whistler,
Squamish, and Pemberton later in 1994.
Prince George Free-Net: The Prince George Free-Net, due to be
operational by June 1, 1994, has recently adopted a policy,
locally encouraged by the Science Council of B.C., to accept
business users under the same guidelines as non-profit
information service providers. Financial support from these
users will be voluntary. As businesses outgrow Free-Net
network capacity, they will be encouraged to move to
commercial network providers. An advisory committee of
business interests is forming in Prince George and it is
expected that this group will contribute to policy
development for the local commercial use of Free-Nets. This
open door policy for commercial use of Free-Nets is intended
as a means to develop locally based electronic service
providers who will incur minimal costs to test the market
strength of such start-up operations.
Toronto Free-Net: The Toronto Free-Net Inc. is due to go into
operation in April, 1994. Donations have been received from:
Rogers Shared Services, a division of Rogers Cable:
contributing $500,000 of services, facilities and
equipment over the next five years, including Internet
access;
Ryerson University: contributing office space and
services;
SUN Microsystems: donation of three computer
systems;
York University: donation of a SUN computer system;
and
North York Public Library: contributing staff time to
support the integration of all of the regional public
libraries systems.
This recent example in Toronto deserves recognition be given
to the volunteers, fund raising committees, and corporate and
institutional partners that have made this collaboration of
resources possible. However, it may also illustrate the
potential disparity of access to resources between large urban
areas and more regionally-based Free-Net operations.
Why are Free-Nets of Interest?
The Free-Net model is unique as it links the capability of
communities to define their needs for information services
with the global utility provided by the Internet. The Free-Net
models have proven that a strong demand exists within the
community for information services. Free-Net growth has
managed to continually exceed the capability for service
delivery. When additional resources are added, usage quickly
exceeds their capacity. They have also demonstrated that this
demand can be translated into both usage of commercial
services and creation of new technology based businesses
within the community.
KEY CHALLENGES
An understanding of the key challenges faced by the Free-
Nets in providing service to the community is essential to
making the right choices for the future. The discussion that
follows explores these challenges and their implications for
Free-Nets.
Sustainability
Free-Nets are currently surviving on a combination of
donations both corporate and individual, and volunteer
labour. The dependence on donations has forced the Free-
Nets to operate on a day-to-day basis. However, even though
they are severely constrained by resources, Free-Nets have
managed to generate, through word of mouth advertising,
service demand to fully utilize available capacity.
To offer a service to their various stakeholder groups; the
community, the information provider, the patron and the
volunteers, Free-Nets must be able to instill confidence in
their ability to sustain operations. The community requires a
commitment that their investment in Free-Nets will generate
an ongoing benefit. Their concern reflects the Free-Nets
capability to resource the ongoing operations and
administration of a complex technology infrastructure. The
information provider requires a stable infrastructure and a
known patron base to ensure their message reaches their
target audience. Their concern reflects the Free-Net’s
capability to provide a service level that attracts and
maintains a base of registered users or patrons.
The patrons require a range of services and information
sources that is accessible, useful and capable of sustaining
interest. Their concern is that the service be easy to use and
topical with a reasonable ability for access.
The volunteers require a level of resourcing that enables a
reasonable level of service to be provided to their
community. Their concern is that their efforts expended to
initiate a Free-Net and its resulting level of service meets
expectations.
In summary, there is a need for ongoing revenue sources for
Free-Nets, if they are to become a viable component of the
information highway.
Defining Community Needs
One of the key strengths of the Free-Net movement has been
its close ties to the local community. The services and
information sources of each Free-Net reflect the community’s
needs and interests. The Free-Net volunteers are community
members and are accessible to both Free-Net
citizens /patrons and information providers. Free-Net
meetings provide a forum to discuss issues relating to
technology and the community. Free-Net associations are
vehicles to lobby for more information services for the
community. Free-Nets, as they grow and evolve, must ensure
the community volunteer spirit and commitment is retained.
The community has proven to be the best judge of its needs.
The volunteer concept embodies a grassroots commitment to
success.
The combination has proven to be able to provide services
that are both in demand and of benefit to a community.
These outcomes have remained elusive to many of the
national and commercial test services that have been
launched in the past several years.
Providing Ubiquitous Access
Free-Net’s strengths of defining services that are in demand
have also created one of their major operational problems.
Free-Nets require telephone access to the Free-Net's computer
system. This access entails a business phone line ($40/month)
and a good quality, high-speed modem ($400 each). Each line
(assuming usage limits of one hour per sign-on) can support
an average of 300 Free-Net users. Demand for services
always seems to exceed available lines. For example, an
analysis of Victoria Free-Net telephone traffic suggests the
need for 150 telephone lines, however, funding only exists for
25. Obtaining the funds to support this demand for access
has also proven to be the task that uses the majority of the
volunteer resources.
The Free-Nets also have the need to be connected to the
Internet for access to other Free-Nets, networks, services, etc.
Providing this access usually means a donation from an
existing Internet site, usually, but not necessarily, an
educational institution. This approach is viable for Free-Nets
in larger urban centres, but in smaller communities other
solutions are required that can only be addressed as part of
a province-wide initiative. Free-Nets also must be usable by
the average citizen. They require a user interface that is
graphical and initiative. They also require a "support"
organization to hand-hold novice users. To date, Free-Nets
have been able to deliver on both needs by providing public
domain software and through volunteer support.
The experience to date with the Free-Nets has identified that
the issues of providing dial-in phone lines and Internet access
are both common to, and major problems for, the community
of Free-Nets. These issues can benefit from economies of
scale and are probably best dealt with at the provincial level.
They are also suitable for provincial policy/directional
solutions without diluting the community’s autonomy.
Scope of Services - What is Provided for Free?
Free-Nets, as their name suggests, provide free services to
their public members. However, the services provided have
a value (cost) which must be borne. Considerable debate and
experimenting has been conducted within the Free-Net
environment pertaining to both the range of free services and
models for supporting those services.
The issue of how to place a value on a free resource has
also been extensively debated and the public library analogy
is frequently used. Valuation becomes important when
determining how to rank services as well as how to define
and prevent waste/abuse by Free-Net users.
The Free-Net experience over the past years has not provided
definitive solutions to either issue. The experience has
demonstrated a need for trade-offs and has shown the
community to be the best judge of where those trade-offs
should occur.
Free-Net Structure - What is Free-Net?
As previously stated, Free-Nets have evolved through a
grassroots network based upon a set of principles set out in
the Free-Net Blue Book. This has lead to a loosely defined
concept of what comprises a Free-Net and its supporting
organizational entity.
This loose confederation has served well during the
incubation stage of the Free-Net movement. However, if
this is to be a vehicle for a widespread community roll-out,
it is lacking in several key areas.
Firstly, garnering sustained support for a concept that has as
many interpretations as the organization has members,
creates significant obstacles. The key one is the question:
What am I being asked to support/buy? Secondly, the
question of who is authorized to represent, or more
importantly commit, a Free-Net organization is often raised.
Thirdly, the issue of which organization am I supporting is
queried. If I support Free-Nets in B.C., how are revenues split
between communities? If I support a service for government,
do I support Victoria who may host the information or all
Free-Nets who provide access?
Free-Nets have also experimented with their role in
determining the content of the available information bases.
Their roles have ranged from a role of not providing any
approval of content to "moderating" all discussion groups
and information bases. There has not yet been any definitive
model that balances freedom of speech against the need for
some level of censorship, that balances access by the public
against ownership by the individual.
What is necessary is a definition of minimum
standards/definition of what is a Free-Net and the ownership
of the resultant information. A process for determining Free-
Net membership is needed, as well as a democratic means of
electing officers and setting standards of conduct.
As noted earlier, the B.C. Free-Net Association has been
formed to promote the establishment of Free-Nets; provide
support for existing Free-Net organizations; advocate
equitable access to and facilitate public education and
awareness of the issues surrounding access to information
and network services. The provincial span and community
focus of Free-Nets also demands local autonomy for the
community Free-Net association while providing a provincial
body to provide direction and maintain standards and deal
with issues that span communities. The B.C. Free-Net
Association is the obvious body to fulfill this province-wide
role.
Commercial Use of Free-Nets
This is a controversial issue that tests some of the basic
ideology of Free-Nets. Some Free-Net members have been
adamantly opposed to the Free-Net as a vehicle for any
commercial services. They oppose this for a variety of
reasons, one of which being that they feel that it may limit
the ability of a Free-Net to gain charitable, non-profit tax
status. Others see commercial activity as a means to
generate dependable revenue to expand the public access for
Free-Net and improve the free services .
A consensus appears to be reached that the Free-Nets can fill
a void in the community that is not being readily addressed.
The Free-Nets are viewed as being an appropriate vehicle to
provide information access services to a variety of non-profit
organizations as well as a vehicle for promoting Canadian
cultural content. These organizations should contribute
towards the cost of this service, with the provision to be able
to waive changes if the organization is not able to pay. There
is also a growing consensus in B.C., where the rules
governing the operation of non-profit societies are quite
different from the U.S., that Free-Nets can play a valuable
role in providing a base level of access to some commercial
services even if they do not provide such services themselves.
This is facilitated by the rules of BCnet (British Columbia's
Regional Internet) which allows commercial traffic.
VISION
The purpose of a vision statement is to clearly and succinctly
express the reason for Free-Nets. The vision for Free-Nets as
reached by the participants in this project is:
A national network of linked communities with grassroots
support providing local equitable access to basic
educational, social, cultural and commercial interactive
communication services.
Free-Nets are envisioned as organizations that continue to
push the envelope to expand the definition of basic
interactive community services.
VALUES FRAMEWORK
The following values framework provides the basis for the
development of an accountability structure to guide Free-Net
operations and for the design of bench marks and outcome
measures which may be used to assess the quality of
operating decisions and service delivery.
Democratic Information Exchange: Free-Nets are based on the
concept of access to information being public good rather
than a scarce resource affordable only by elite professionals.
Access to base information is to be provided free.
Foundation for an Information Society: Free-Nets provide a solid
foundation for all citizens to participate in the Information
Age . They provide an electronic network within the local
community as well as access to the broader provincial,
national, and global communities. They actively promote
information literacy and empower citizens to be providers as
well as recipients of information. They provide a forum to
promote and distribute Canadian cultural activities and
products in the evolving information technology world.
Integrity: Free-Nets have a commitment to openness and
honesty and to ensuring that all activities are undertaken in
a visibly fair, ethical and prudent manner.
Innovation: Free-Nets are constantly expanding the envelope
that delineates the boundaries of information that is available
to the public.
Value for Money: Free-Nets are committed to providing a
public service in consideration for allowing free access to
information. As such, their services must have value to their
patrons and information providers alike.
FREE-NET DEFINITION
As stated in previous sections, Free-Nets require an identity
to allow them to be tracked as a viable service provider. This
identity is comprised of both organizational structure and
service definitions.
To be a Free-Net, the following minimum components must
be in place.
Organization: The Free-Net organization must be a non-profit
society as per British Columbia government corporate
regulations. This society must have members who register
annually and pay a membership fee. In order for the Free-
Net to be associated, it must be chartered by the B.C. Free-
Net Association. The Free-Net must have an elected executive
and must adopt the B.C. Free-Net code of conduct. The
association must have a method of registering patrons and
information providers.
Services: The Free-Net must offer the following services FREE
to the patron:
access to local/government information and
services;
access to other Free-Nets and optionally to
other networks;
capability for patrons to participate in
community forums; and
access to basic Internet services and related
basic E-mail.
The Free-Net organization must have a process to tailor their
service profile to meet the needs of the local community.
FREE-NET BUSINESS MODEL
The Free-Net business model consists of three components,
a context model, an operations model and a services model.
The context model delineates the roles of a provincial Free-
Net association and the community association. There are
some key functions that can be sustained at the provincial
level that would probably be very difficult to sustain if each
and every community attempted to handle them
individually. The operations model depicts the business
functions that comprise a Community Free-Net. The services
model presents services provided by Free-Nets and probable
markets.
Provincial Free-Net Organization
The Provincial Free-Net Organization is an incorporated body
whose role is to:
represent Free-Nets to provincial and/or national
organizations and government;
market services that span communities to
provincial/national customers;
support existing Free-Nets in the areas of standards,
policies, practices and software tools;
maintain a code of conduct for Free-Nets;
market Free-Net concepts to communities and to
initiate the formation of community Free-Net
associations;
maintain a Free-Net toolkit" to be used to set up
community Free-Nets;
measure Free-Net outcomes and report to the
Executive;
charter community Free-Net associations; and
resolve issues/conflicts that cross community Free-Net
boundaries.
The membership of the organization will be comprised of
one delegate from each Community Free-Net. The delegate
must be a Community Free-Net member and elected by the
Community Free-Net Association.
The B.C. Free-Net Association is the obvious body to play
this province-wide role, but its mandate will need to be
expanded to provide the following business functions:
Executive Representation: This function represents the Free-
Nets at the executive level of government, business, and
regulatory groups.
Free-Net Operations: This function supports the Community
Free-Net Associations at an operational level. It includes
supporting the initiation of new Free-Nets and maintaining
policy, practices, and tools for existing Free-Nets. It also
includes coordinating/facilitating national and provincial
information providers.
Service Marketing: This function markets Free-Net services to
telecommunication firms, network services, and
provincial/national governments.
Strategic Direction: This function incorporates an Advisory
Council that meets on a semi-annual basis to:
approve B.C. Free-Net strategic direction and policies;
monitor the outcomes of the Free-Net associations
against strategic direction; and
mandate changes to Free-Net strategies/policies to
address deficiencies.
The staffing requirements of such a provincial body are
minimal as are shown in the following diagrams.
Free-Net Operations Model
The Free-Net operations model reflects the range of services
addressed by the Free-Net concept. The services are outlined
in the sections that follow.
Access: This component provides local dial-up access to a
Community Point-of-Presence (or local access hub) that, in
turn, also is linked to a community host computer system.
This access component includes the link from the Free-Net
host to an Internet access point. It is envisaged that in the
order of several thousand local lines will be required to meet
the province-wide needs of the base Free-Net service.
Services: This function includes the administrative and
technical services required to operate the lines, connections,
and Internet linkages on a day-to-day basis.
Tools: Tools encompass the public domain software,
documentation, "Free-Net toolkits , etc. that are required to
provide access to and support the operation of a network of
community Free-Nets. Public domain software tools includes
world-class products such as Mosaic, Eudora, Gopher, etc.
Communications: This function encompasses the interactive
component of Free-Nets. It includes:
person-to-person communications,
person-to-group communications,
person-to-government communications, and
person-to-discussion forum communications.
This interaction must include connectivity to other
Community Free-Nets. It may include connectivity to other
networks, either government, private, or commercial.
Information Services: The information services function
incorporates access to all available electronic information
sources. These sources may be the following:
data maintained on the Community Free-Net
host computer system,
data reference/points maintained on the
Community Free-Net host computer system,
data accessible via other Free-Nets,
data accessible via the Internet as permitted by
the Community Free-Net, and
data accessible via other networks as permitted
by the Community Free-Net.
Services Model
Free-Nets must be viewed as providers of services that have
a value to their patrons. The challenge is to translate the
service valuation into a commodity that can be in turn used
to operate a Free-Net. The services’ potential customers and
a valuation model are illustrated below.
SERVICES
POTENTIAL CUSTOMERS
PAYMENT /VALUE
Providing access
to information
and interactive
forums/E-mail
· Residents of a community
· Canadian artists, writers,
composers, etc.
· Annual membership fees
· Donations
· Volunteer labour
Providing
incubator
Internet access
· Community small business
· Community professionals
· Donations
· Volunteer services
Providing
community
group
information
bulletin boards/
databases/
E-mail
· Non-profit groups
· Community funded agencies
· Cultural groups
· Infrastructure access
· Capital equipment donation
· Annual memberships
· Grants
· Billable services
Introducing
Information
Age technology
into a community
· Community government
· Community associations/
groups
· Grants
· Government surplus
computer equipment
Providing access
to Government
Information
Services
· Local government
· Provincial government
· Federal government
· Billable services
· Grants
· Government surplus
computer equipment
Creating
demand/
customers for
Information
Services
· Telecom service providers
· Network operators
· Grants
· Communication
services
OUTCOME MANAGEMENT FRAMEWORK
Outcome management processes are required to ensure Free-
Net strategies, practices and service deliver a predictable
result. The processes must be translated into measurable
results and incorporated into the Free-Net management
framework. This framework must include a process to adjust
strategies/practices/directions when desired outcomes are
not being achieved. An outline of an outcome management
framework is presented below.
STRATEGIC PRIORITIES
To implement our vision for Free-Nets throughout British
Columbia the following are the priority activities that must
be undertaken.
Enhance the Structure of the B.C. Free-Net Association
The B.C. Free-Net Association requires enhancements to
include the following:
a code of conduct;
bylaws and officers;
organization to support staff operations as per model;
outcome measures; and
compilation of a Free-Net toolkit.
Harmonize Core Elements of Community Free-Nets
The existing community of Free-Nets require changes to
conform to the base Free-Net model. To the best of our
knowledge all the existing Free-Nets comply with the intent
of this model, the areas that require enhancement are in
practice and/or administrative structure areas. For example,
Victoria Free-Net Association will need to incorporate a
formal voting membership process into its structure.
Implement Community Free-Nets
To implement the vision for Free-Nets, a project, Community
Free-Nets, should be resourced and initiated. At a minimum,
this project should encompass the following:
a proposal to the CRTC, supported by the major
telecommunication carriers, to provide Community
Points-of-Presence (access hubs for local dialling area
phone lines) based on a per capita population based
formula;
a proposal to non-regulated network operators to
provide Internet access capability to link community
Free-Nets;
a proposal to BC Systems and the provincial
government to provide the first right of refusal for
surplus government technology to Free-Nets;
a proposal to BC Tel, the Provincial Government, and
Federal Government to buy corporate memberships in
the B.C. Free-Net Association.
MARKETING PLAN
This marketing plan is intended to provide a framework for
the valuation of Free-Net services in a competitive
marketplace. For each service outlined in the strategic plan,
the plan describes the service, positions Free-Net services in
the market, structures the pricing strategy, and outlines the
marketing strategy.
The proposed Free-Net services address a market segment
that is currently not served by any commercial or
government service. Free-Nets targets the entry level user or
patron, either business or non-commercial. Free-Nets are not
positioned to be able to support a user requiring a service
profile that fits current commercial offerings.
The Free-Nets cater to the following patron profiles:
first time patrons learning the technology;
first time patrons evaluating the utility of Internet
services;
Canadian artists, writers, composers and developers
displaying Canadian culture;
casual users (potential patrons or "guests");
focused patrons interested in either time limited or
subject limited areas; and/or
patrons using public access terminals
The estimated potential members/patron for Free-Nets are as
follows:
BC Market
Free-Net Market
Share
Households
1,302,000
300,000
Small Businesses
120,000
12,000
Professionals
80,000
40,000
Municipalities
150
100
Public Access
Terminals
1,000
(20,000 to 30,000
users)
The Free-Net market analysis is illustrated by the following
graph.
Service 1
Providing access to information and interactive forums/E-mail and
providing a vehicle to develop, promote, and distribute Canadian
cultural products/activities/ information
Service Description
This service provides an individual patron with the
following:
E-mail with user friendly front-end and filters,
Internet access to local, regional, national, and
international networks,
Mosaic and Gopher service,
access to community services,
access to government services, and
interactive forums
Market Potential
B.C. population is 3,282,061 with 1,302,000 households.
Recent surveys show that over 25% of households in
B.C. have personal computers.
Public access terminals increase coverage by 200 to 300
individuals per terminal.
Internet capability between existing business,
education and government network provide access
capability for another 100,000 to 150,000 sites.
Competition
None at this time.
Pricing Strategy/Structure
Membership Fee: This fee should be in the range of $10 to
$50 per year for individuals who wish to
have the right to participate in setting
the direction/policy of Free-Nets.
Donations: Donations should be encouraged via a
message on the sign-on screen.
Donations can be further encouraged by
mailing a Free-Net file listing donors
and cumulative total of donations. Free-
Nets should also ensure that a Revenue
Canada charitable donation status
(number) is received.
Marketing Strategy
Experience to date has lead us to believe that acquiring Free-
Net patrons has not been an issue The limiting factor on
registering patrons has been the ability to support the patron
base. The strategy to build the patron base should focus on
fostering new Free-Net communities rather than attracting
individual patrons.
To foster new Free-Net communities, several channels should
be followed. The first builds upon the existing public library
infrastructure using the library professionals as the sponsor
for the community Free-Net. An alternate channel is through
the information technology associations such as Canadian
Information Processing Society, Vancouver Island Advanced
Technology Centre, Data Processing Managers Association,
etc. The educational community (e.g. Trail Free-Net) provides
another marketing channel as well as the community
Chambers of Commerce.
Service 2
Providing incubator Internet access
Service Description
This service provides a business or a professional with the
opportunity to experiment with Internet services and/or
commercial offerings. The services are provided for a set
period of time. Three months are suggested and encompass
such Internet services as telnet, ftp, and Usenet, which are
usually somewhat restricted on a Community Free-Net, as
well as the higher level of E-mail and WWW access that are
appropriate for business or professional use.
Market Potential
120,000 small businesses.
80,000 professionals such as consultants, engineers,
accountants, information systems professionals, etc.
Competition
Commercial Internet Access Providers are a common
outgrowth of Free-Net activity in any community. At least
five of the growing number of such companies in Victoria are
a direct result of the Victoria Free-Net. Although a number
of Commercial Internet Access Providers exist in major
metropolitan areas, such as Vancouver, they are so
uncommon in the smaller communities that BC Systems has
recently offered such a service, on a pilot basis, in Kelowna,
with the stated intention of handing it over to the private
sector as soon as possible.
Planning Strategy/Structure
This service should be offered where there is no existing
Commercial Internet Access Provider for an quarterly
donation that is equivalent to a comparable commercial
service.
Marketing Strategy
These services should be marketed by the local Free-Net in
conjunction with the local Chamber of Commerce. It should
be included in the Chamber’s newsletters/publications as
well as being incorporated into the Chamber’s advertising
program.
The B.C. Free-Net Association should market these services
to the Ministry of Tourism, Small Business and Culture. They
should be incorporated into ministry business publications as
well as being promoted through regional economic
development officers/ programs. The B.C. Free-Net
Association should also market the services through Industry
Canada, incorporating it into publications, seminars, B.C.-
based programs and business information centres.
The B.C. Free-Net Association should also market the service
through the professional associations such as Chartered
Accountants, Certified Management Accountants,
Professional Engineers, Certified Management Consultants,
etc. As well, the services should be aggressively marketed
through artists, writers, composers, etc. associations and
groups.
Service 3
Providing community group information services and access for
cultural groups
Service Description
Community Free-Nets provide the following services for
community non-profit groups/ societies/ associations. This
definition is intended to provide access for the purpose of
establishing and promoting the development of a Canadian
cultural content on the Information Highway.
subscriptions for members;
if hardware is available, a public access terminal;
E-mail;
interactive forums; and
database services on a path to the groups’ database or
their host computer.
Market Potential
There are estimated to be in the order of magnitude of 10,000
non-profit groups in B.C. Unfortunately, the scope of this
project did not allow for an accurate enumeration.
Competition
There are specific vertical networks, such as Dogwood for
museums, in the process of being established. Many of these
are already liaising with the Free-Nets at a community or
provincial level. In addition, there are a growing number of
stand-alone bulletin boards being established by local non-
profit groups which could provide much better and more
cost-effective services if incorporated into the Community
Free-Nets.
Pricing Strategy
annual membership fee of $100;
annual fee per database/forum of $50 for databases
less than 10 Mbytes; and
billable services on a quoted basis to construct
infrastructure.
Marketing Strategy
The marketing strategy for this service is threefold:
the B.C. Free-Net Association, working with the
Provincial Government Services, should educate
funding organizations on the capability of Free-Nets;
the Community Free-Net should market to community
groups through direct contact; and
Free-Net patrons should be encouraged through a
community discussion group to identify new
information sources/groups.
Service 4
Introducing Information Age technology into a community
Service Description
The Information Highway Advisory Council's terms of
reference states:
The information highway initiative is essential for Canada’s
success in a new global economy in which value, jobs and
wealth are based on the creation, movement and application
of information. Its enabling effects will be felt in all
industry sectors.
Free-Net services provide a key opportunity for a community
to participate in the national Information Highway initiative.
It provides the capability to link the residents of the
community with information networks operated by
governments, education institutions, health/ social service
providers and commercial services. It provides the
opportunity to interchange views, ideas and information with
other communities. As well, it links the community to the
global village .
Free-Nets also provide additional services to the community:
Free-Nets provide skill transfer to local residents;
Free-Net Associations are a forum to debate the
impacts/opportunities; and
Free-Net volunteers become a technology support
group for the community.
Market Potential
There are 149 municipalities within B.C. plus a number of
unincorporated communities. There is also the potential to
structure Community Free-Nets for Aboriginal communities
which would substantially increase the market potential.
Competition
There are a number of initiatives that link British Columbia
to segments of the Information Highway Initiative (e.g., Rnet
and the Provincial Learning Network). Free-Net is unique as
its focus is linking to the citizen rather than to institutions or
specialized groups.
Pricing Strategy
The need for government support for this service is modest.
Free-Net envisages the following support:
an annual membership of the B.C. Free-Net
Association;
providing Internet access to link Free-Net communities
(This could involve using excess capacity on existing
public networks in B.C., such as those operated by BC
Hydro, BC Systems, or Westel or a non-regulated
service, such as BC Tel's Advanced Communications.
At commercial rates, this capacity would be valued at
an annual amount of approximately $500,000);
donations of surplus government computer and
telecommunications equipment; and
government lobbying and support for CRTC policy
changes.
Marketing Strategy
The marketing strategy is through lobbying at all levels of
government as well as encouraging/ promoting media
interest in Free-Nets.
Service 5
Providing access to Government Information Services
Service Description
Free-Nets provide two levels of service for providing
electronic access to government information. The first is
providing access to government information bases/ services.
This service provides a link between Free-Net and
government computer systems that maintain the databases.
The second is housing and providing access to databases for
government funded, province-wide, non-profit organizations.
This service receives data from the organization which is in
turn loaded onto the Free-Net system in a form allowing
access from anywhere in the network.
By providing a means for interactive access to information,
Free-Nets are a vehicle for government to streamline and
improve its operations.
Market Potential
The number of non-profit databases that are suitable for Free-
Net access is estimated to be in the order of magnitude of
1,000.
Competition
Queen’s Printer Bulletin Board Services and print media
Pricing Strategy
1. For province-wide government funded non-profit
groups:
- Annual membership fee for B.C. Free-Net
Association of $100.
- Annual fee per database/forum of $100 for
databases under 10 Mbytes to the Community
Free-Net that houses the database.
2. For government databases:
- It is suggested that the Queen’s Printer provide
a service, similar to its role in print media, to
format data for electronic access via Free-Nets
for the provincial government.
- An annual corporate membership of $50,000 in
the B.C. Free-Net Association structured for
provincial and federal governments as well as
BC Tel.
Marketing Strategy
The marketing strategy for this service is via the
establishment of protocols with government. Two protocols
are required. The first is at the strategy/policy level and
requires an executive champion to ensure Free-Nets are a
sustained component of the government’s information
dissemination strategy. The second is at the operational level
and provides the service of formatting government
information bases to ensure they are accessible from Free-
Nets. The strategy/policy champion for the British Columbia
provincial government is envisaged to be the Ministry of
Government Services and the operational support is the
Queen’s Printer.
Service 6
Creating demand/customers for Information Services
Service Description
Free-Nets provide a valuable service to telecommunication
and network service providers. Free-Nets create market
demand. They are a large scale means to initiate and educate
potential commercially viable patrons (households,
professionals and small business). They are not competition
for commercial services as Free-Nets do not provide a level
of service suitable for sustained business use.
Free-Nets also provide an incubator service to nurture both
business and personal users of information services. Free-
Nets provide the support for a user when they would not be
commercially viable and are structured to evolve them to a
commercial service when they become self-sufficient.
Market Potential
Free-Nets are estimated to convert one out of five patrons to
be a viable commercial user of telecommunication/network
services within a 12 month window. The size of the patron
conversion is limited by the number access lines available to
Free-Nets up to an estimate of 20% Free-Net potential
patrons.
Competition
None at this time.
Pricing Strategy
The pricing strategy for this service is for the communication
carriers to provide a ratio of one local telephone line for
every 1,000 households in the community for local Free-Net
use. The carriers would also provide access from the
Community Point-of-Presence to a Free-Net host computer.
Marketing Strategy
This service is to be marketed by preparing proposals to the
major carriers, BC Tel and Unitel, as well as supporting
documentation for the CRTC.
Appendix: List of Interviewees
.