Why we should all be concerned for the future of CCN

From: "Colin Prudhoe" <prudhoec@ns.sympatico.ca>
To: "Peter Morgan" <ae112@chebucto.ns.ca>, "Christopher Majka" <nextug@IS.Dal.CA>
Cc: "CCN Information Provider Committee" <ccn-ip@chebucto.ns.ca>, "Richard Rudnicki" <foxpoint@fox.nstn.ca>, "CCN Board" <ccn-board@chebucto.ns.ca>,
Date: Sun, 11 Oct 1998 19:53:13 -0300
Importance: Normal
Precedence: bulk
Return-Path: <ccn-ip-mml-owner@chebucto.ns.ca>

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Hi,

-----Original Message-----
From:	ccn-ip-owner@chebucto.ns.ca [mailto:ccn-ip-owner@chebucto.ns.ca] On
Behalf Of Peter Morgan
Sent:	Sunday, October 11, 1998 3:47 PM
To:	Christopher Majka
Cc:	CCN Information Provider Committee; Richard Rudnicki; CCN Board; CCN
Technical Committee
Subject:	Re: Why we should all be concerned for the future of CCN

Hi Chris,

Comments throughout:

>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.

And/or they do not see a value in paying $400 annually. Where would these
folks go? No one else that I know of offers VDN's for free. They would have
to pay an annual/monthly fee for anything but a very small, advertising
laden geocities site. $400/year represents a better value considering what
we bundle with it.

At some point in the future it would be nice to be well off and say: "Hey,
IP, the best thing going is your own domain and we offer this for free."
For now we need sustainable revenue.

Most of them will probably go nowhere, however as Chris says, it is more
than likely that the vast majorities of IP's will choose to go without a VDN


>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.

I guess I gotta say that that is too bad, but we simply can't give away our
resources (time/energy)

>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

My experience as a consumer of these sorts of things is that sure, a few
keystrokes, a bit of email and poof, like magic I have a domain. However,
there are a whole series of ongoing issues. Mail account setup/deletion.
Questions about web space, directories, cgi-bin, etc etc etc. To say
nothing of the overhead to support all this: telephone lines, office staff.

Actually part of this process is actually carried out by the IP themselves.
They have to submit the application to CA Domain and then forward the
reply/approval on to CCN on receipt of such.

Also unless it's, again, something that's not widely advertised the use of
"cgi-bin, etc. etc" is severely limited to no more than two or three generic
scripts


(Since a VDN is not also paying an individual fee we are providing a phone
line which costs us every month -- $3/month in the case of the 20:1 PPP
ratio.) And then hardware and software upgrades ... Yikes.

Could you explain this a little more? I don't understand this "not paying an
individual fee"

>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.

50 IP's times $400 = $20,000/year

I'm sorry I really feel there's a lot of areas in the revenue collection
process that need attention before we start trying to squeeze additional
funds out of IP's.  As I said before, I don't believe most if any IP's are
approached to submit contributions on an annual basis, unlike individual
users.  This is where we are losing probably a not insignificant amount of
revenue.  Try collecting this first and see where it leaves us.

If we're dead set on the $400/year tag, then we better make sure it is
clearly outlined what an IP can expect to receive in return.  It would also
probably be a good idea to actually chart the benefits and associated fees
against those of the ISPs we are competing with, and publish them for all to
see.

If the $400/year is to include a PPP mode of access through a direct line
(that's not always busy), with additional E-mail accounts, use of custom,
specific IP oriented, cgi script hosting, direct FTP access etc.  then it
may look more attractive.  At present, however, I think most current IP's
would see a VDN at $400/year an unnecessary luxury whose only visible
benefit is to give them a URL less than three lines long.


I agree wholeheartedly that CCN should not "go in the hole" to provide such
services as VDNs, however I think it is a serious mistake for CCN to regard
such things as a nice big cash cow, because unless it offers something quite
outstanding or significantly cheaper than commercial ISPs then people are
just not going to buy into it.

It seems to me that what we are discussing here is a completely new angle in
the way CCN is to think and operate, something markedly different from the
ideals conceived several years ago.  Yes I know times change,  but we have
to think very carefully before we decide that CCNs survival is based on us
being in direct competition with commercial ISPs.

I think there's a good chance we could significantly improve our cash flow
with some kind of a corporate sponsorship scheme.  If some of the big
corporations were shown some details of the hits that CCN receives then it
could be an easier sell than most think.  Get 10 major corporate sponsors
and the cash they contribute could well dwarf the amount CCN MIGHT receive
from an expanded IP contribution scheme.


Regards,

Colin Prudhoe
CCN Technology Editor and SCETTNS IP Editor

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