IP Fees - the final chapter

Date: Tue, 21 Sep 1999 23:49:32 -0300 (ADT)
From: Christopher Majka <nextug@is.dal.ca>
To: aa935@chebucto.ns.ca
cc: ccn-board@chebucto.ns.ca, ccn-ip@chebucto.ns.ca
Precedence: bulk
Return-Path: <ccn-ip-mml-owner@chebucto.ns.ca>

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Hi all!

On Tue, 21 Sep 1999 aa935@chebucto.ns.ca wrote:

> 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

I'm in agreement with all of the following economic analysis and
philosophical rationale. I think they spell out our position and idealogy
(in the sense of our social and community commitments) very elequently and
very well. Our fees schedule is now reasonable in the extreme! ;->

I have one remaining question (as per my last communique to the Board & IP
Committee): namely, who does this fee and service schedule apply to? 
Everyone (i.e both non-commercial and commercial IPs)? Are we making any
distinction or differentiation?

In other words is a for-profit buisness eligible for membership and a
virtual domain name at these rates? Can such an organization come in at
the basic rate ($50/year; suggested) or can they only start at the VDN
level ($100/year; + Basic or PPP service)? 

Cheers,

Chris

>  ------------------------------------------------
> 
> 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
> 
>  -------------------------------------------
> 
> 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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> 

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