Why we should all be concerned for the future of CCN

Date: Thu, 8 Oct 1998 12:02:00 -0300 (ADT)
From: Christopher Majka <nextug@is.dal.ca>
To: Peter Morgan <ae112@chebucto.ns.ca>
cc: CCN Information Provider Committee <ccn-ip@chebucto.ns.ca>, Richard Rudnicki <foxpoint@fox.nstn.ca>, CCN Board <ccn-board@chebucto.ns.ca>,
Precedence: bulk
Return-Path: <ccn-ip-mml-owner@chebucto.ns.ca>

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Hi Peter! 

A quick response: I agree with you on much that you say with respect to
optimistic/pessimistic concerns viz the CCN and its future. We have a
mixed track record, certain strengths & weaknesses and we face a changing
and competitive world. 

However, in relation to the issue of VDN costs for non-profits, if you are
trying to hang the future of the CCN on this limb, I think you're barking
up the wrong tree. ;- >

1) We have (or will have)  5-6 of these. There has not been a stampede for
this service since we 'officially' started offering it (2 of these have
been in existence for some time). My familiarity with these groups leads
me to the belief that if we tried to up the cost for these to $400/annum
at least 4 of these would certainly opt out or move out (sports group;
student newspaper; research project & prof group). Finding $400 one-time
was a big enough shtick for them let alone $400 per annum. 

The NDP caucus seems willing to go ahead which is great. I've had
conversations with 3-4 of our other IPs since the spring inquiring about
VDN's. They've all put a VDN on a distant back burner since they feel the
_current_ (one time) price tag is still too steep for them. 

Aside from the fact that I believe the proposed price tier doesn't reflect
the (primarily) one-time set up costs, in any immediately foreseeable
future I can't envision VDN fees (of the kind proposed) from the
non-profit IP sector forming any substantive revenue source for the CCN.
Not from our IP base. I'd be delighted to be proven wrong on this
projection, however, ... ;->

2) I do see potential significant sources of revenue from: 

A) Small-Business IPs: there are many of these; as Richard has proposed we
could readily target certain sectors (perhaps currently
under-represented?); Many such IP's have a real cash-flow; and we can
offer rates that are more than competitive. (Hence my query about
defining/resolving rates for such. Is it still $500 per annum?) 

B) PPP service: users/IP's want this.. I think this service is highly
marketable; 

C) How about CSuite? I recall our business plan/forecasts the projected we
could make/build a substantial revenue for this in terms of technical
support and development once there was a sufficiently large installed base
of the technology. I think we have a real winner on our hands with this
technology. Where are we in terms of moving this technology? 

D) How about finding sponsorships for CCN pages? We've discussed this
option in the past but we haven't secured any.  There are a many possible
such pages on the CCN and implementing some sort of sponsor logo/credit in
suitable places is a low-cost, low-tech potentially on-going source of
revenue. 

E) Using our in-house expertise in other contexts. This spring's
Health-Canada project, very expertly administered by David Murdoch, was
great template on how the CCN could draw on our own technical and training
resources to provide a valuable service; generate some profit; create some
employment; and create products of value and benefit for the CCN community
at large. I see this as having laid the groundwork for what could be other
such projects that could be both revenue generators of the organization
and benefit it in other ways as well. 

F) Partnerships with other players in the infromation technology sector.
We've talked before about strategic alliances with others (Sympatico?) who
would be very interested in the user and IP base that we have.

G) Partnerships with sites for PATs, Urban CAPs, Volnet initiatives, etc.
The list goes on -- undoubtedly beyond my knowledge of the possibilities. 

3) I don't know if the user trend (from 5,200 --> 4,800) is real or if it
indicates anything significant at this stage, however, we do know that we
are in a highly competitive environment for users and I don't know (or
have any easy answers) on how we can compete. 

Here's a small illustration: Friday I was at the SNS Celtic Electric
concert. Sympatico personnel were there in force (probably 10+ people) 
handing out and collecting sweepstakes form (+ exhibits, etc.) . They had
a draw after intermission and gave away $100 gift certificate plus 2 free
SNS tickets. Trivial cost. In return they got a thousand names, with their
addresses, EMail addresses, age brackets, demographics & some Internet
info. You want to guess how they'll use this information? ;->

I constantly wonder how we can compete with such marketing initiatives
paved by revenues that we can only dream of. Look at the Sympatico
marketing/demonstration sites at places like City Center Atlantic.
Beautifully designed, equipped with top-flight hardware, fully staffed by
people trained to market Sympatico in a sophisticated fashion (go in and
ask for an M-powered demonstration sometime ....). It beats me. 

I share your view of CCN by 2000 and would like to see movement on all the
changes you propose. If I can underscore what I think is a key element
(and of course this does have cost repercussions ;->) it is to have more
technical and administrative staff positions/time.

I think in some areas we've reached the limit of what we can reasonably
expect of volunteers in terms or running, developing and administering
what is a very diverse and complicated system. Moreover, there are a whole
range of issues (administering/deciding/implementing/invoicing pricing
tiers being one of them ;->) that would be ever so much more efficiently
dealt with by a staff person (with input from the Board and appropriate
consultation) then by a decentralized group of volunteers such as we all
are. 

Just my $0.02. 

Cheers,

Chris

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Christopher Majka                               <aa051@chebucto.ns.ca>
Editor-in-Chief: Chebucto Community Net - Halifax, Nova Scotia, Canada
URL = http://www.chebucto.ns.ca/Home.html

"We have ... in this country ... far too many captive editors who cannot 
even be heard to rattle their chains."              -- Carl E. Lindstrom
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