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At the board meeting tonight, a motion was presented, seconded and passed
regarding a fee schedule for information providers. The schedule is now the
only official fee schedule for information providers. It can be posted where
appropriate, and disseminated to the public.
Questions regarding fees or services not covered by the schedule should be
forwarded to the board for resolution.
For your information, attached is a document outlining the philosophy regarding
the fee structure. Your comments or suggestions are welcomed.
Shortly, for your convenience, a IP rate card will be posted at
http://www.chebucto.ns.ca/~aa935/final.htm
Doug McCann
Chair, IP Committee
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Ah fees! Is it just another four letter word?
There are two approaches to establishing a fee schedule. The first involves
cost accounting, and markup. The second is market analysis and charging what
the market will bear. My preference is the cost approach, but lacking the
financial data, we are stuck with the latter. In CCN's case however, it is
what our market can afford.
I suspect that service charges in the past have been strictly ad hoc - what
revenue do we need in the short run, to sustain the organization. If revenue
flows are meeting expenditure commitments, don't worry about it.
However in light of CCN's current position and commitments, are more
professional approach is required. But we shouldn't lose sight of our legacy
and commitment to community service. Community service, here is more closely
aligned with community economic development than strictly business services.
While a business services approach to a niche market has some merit, the
success of CCN has been largely based on volunteer commitment motivated by
community service. A too drastic shift to the perception of a business
orientation will only undermine this commitment, and thus our greatest
corporate asset.
In essence our consultation with the IP Committee members indicates that we
should be encouraging membership, and collecting membership dues. We should de-
emphasize the sale of services - that most of our services should be available
at little or no cost to the member. The point was made that many of our users
pay their annual dues, but do not necessarily use any services. They
contribute because they believe in CCN's philosophy.
I concluded, however, that premium services such as PPP and VDN are considered
services that should have user fees.
With respect to the current interim structure, it was pointed out that
individuals can obtain a PPP account for $100, while IP's are charged $200.
Any rational IP would therefore purchase an individual PPP membership. The two
rates must be synchronized.
Competition in the ISP market has been driving down the price for hosting
VDN's. Our $200 fee is therefore excessive. This could also be dropped to
$100, and I think for the amount of effort required to setup and maintain the
account, even lower ($50?). Users would still be responsible for registration
fees with the appropriate agency. COM registration has an annual fee, and CA
is gratis.
Some committee members also considered the blocks of disk space offered IP too
high to meet their needs. The fee associated with disk space allotment is
therefore perceived as excessive. Lowering the space allotment would,
strangely, dissipate this perception. The point was also made that if we offer
100megs, and multiply that by the number of IP or member accounts at that
level, we would be over-selling our available space. Are there legal
implications here?
So what should the 'fee' schedule look like? I offer the following for
consideration. These 'fees' are open for debate, comments, suggestions.
Doug McCann
Chair, IP Committee
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Information Provider Membership Dues
Basic Membership
$50 per annum (suggested)
Information Provider Services
Basic Service
NC includes: 25 meg limit on space, volunteer training, 2 mailing
lists, text-based dial-up service.
PPP Service
$100 per annum Basic member services, plus graphics dial-up service.
VDN Hosting
$100 per annum Basic member services, plus CCN hosting of a user or member
virtual domain name, organizational email address.
Additional registration fees from the registrating
organization may apply. For details see
http://www.chebucto.ns.ca/Services/IPsupport/vdn.html
Addition E-mail
$50 per annum custom e-mail account
NOTES:
CCN users are encouraged to become members.
Prospective and current members are also encouraged to make donations in
support of CCN.
The purchase of services does not require membership.
Information Provider service fees are payable in advance, and renewed annually.
All other services (additional space, e-mail accounts, etc.) fees subject to
board approval.
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