Internet Traffic Management and Accounting Workshop QUT, Brisbane January 31st & February 1st, 2011

AARNet Charges in … ?

AARNet Charges in 1994 Since its inception four years ago AARNet has been a “user pays” network with the costs being shared among universities, CSIRO and Affiliate members. Each university has contributed a fixed annual fee in proportion to its Government operating grant, CSIRO has contributed an agreed proportion of the total network operating costs, and Affiliate Members have been charged according to the bandwidth of their connection to the network. These contributions towards the cost of expanding and running AARNet were fixed on a year by year basis regardless of the amount of traffic each organisation generated on the network. In addition funds were provided by the Australian Research Council for improving research infrastructure. This method of recouping costs was appropriate for the early years of AARNet’s operations but in order to meet the growing demand from users for network capacity an alternative charging structure for using AARNet is now required. The Australian Vice Chancellors’ Committee is examining a range of options for a new charging structure, taking into account traffic volumes. A target implementation date of 1 January 1995 has been set.

AARNet Charges in … ?

AARNet Charges in 1991 The Australian Universities each pay a fixed annual subscription via their yearly subscription to the Australian Vice-Chancellor’s Committee itself. The size of the yearly contribution is based on the size of each institution’s annual recurrent budget (as an estimate of the institution’s size) and ranges from $20,000 to $100,000 per year. These annual subscription fees cover the full cost of leased communications lines from a (single) connection point within each institution to the relevant State regional network hub site, as well as provision of the necessary network router equipment required to connect each institutions campus local area network to AARNet. Te CSIRO contribution is calculated differently to reflect its organisation (many Divisions scattered geographically throughout Australia). The CSIRO pays the Australian Vice-Chancellors’ Committee a fixed sum each year and undertakes to cover the full costs to provide leased lines and router equipment to connect its various internal networks to the State regional network hub sites.

AARNet Charges in … ? On-Net Subscription Fee The On-Net Subscription Fee for the first year of the Term is $... This is derived from the following formula: 0.0018(TRI) + NAC(EFTSU + 3(FTEStaff)) where: TRI = Relevant Institution Total Research Incomes EFTSU = Higher Education Equivalent Full Time Student Units FTEStaff = Full Time Equivalent Staff NAC = Number of AARNet connected locations The above formula takes into account the latest published figures available as at the last day in June in each preceding year.

AARNet Charges in 2005/2006 Commodity or Off-Net charges Access Charge The Relevant Institution agrees that it will pay a commodity subscription charge for all Off-Net Traffic, (as that term is defined in Schedule 1 ) the amount of which for 2005 will be the sum of: the commodity subscription for 2005, which is $... [Note: this is the actual total commodity charge incurred between 1 June 2003 and 31 May 2004 (charged at $22.50/GB) a charge of $7/Gigabyte for traffic received in 2005 that is in excess of the volume received between 1 June 2003 and 31 May 2004. For 2006 and subsequent years, the commodity subscription charge will be set to the previous years’ total commodity charge. Access Charge The amount of the access charge will be $1,000 per month (or $12,000 per annum) for each dedicated connection to an Australian PoP Site or $250 per month (or $3,000 per annum) for each shared connection to an Australian PoP site.

AARNet Charges from 2005 to 2011 2005 – AARNet3; On Net and Off Net Subscriptions; $22.50 and $7 per GB 2006 – $7 per GB 2007 – $7 per GB 2008 – $5 per GB; On Net and Off Net charges “normalised” (Off Net Base) 2009 – $4 per GB; Domestic Peering and Off Peak introduced; Excess Traffic charges partially waived 2010 – $4 and $2 per GB; Excess Traffic charges partially waived 2011 – $2 per GB; Off Peak extended

Revenue from 2005 to 2011

Average Charge from 2005 to 2011

Charges and Revenue 2005 – 2011 (shareholders)

Traffic, Charge and Revenue – 2005 to 2011

Metered and Unmetered Traffic – 2005 and 2010

Metered and Unmetered Traffic – 2010 and 2011

Revenue from Shareholders – 2005 and 2010

2010 Traffic Statistics (all customers) Year On Net Off Net Unmetered Total Domestic International Peer Peak Off Peak 2008 904 384 262 545 122 2,059 614 47% 4,911 % 48% 50% N/A -1% 7% 31% 33% 38% 2009 1,438 539 1,554 625 107 2,137 673 59% 7,301 40% 492% 15% -13% 4% 10% 49% 2010 3,599 1,190 2,738 306 86 3,068 1,281 71% 12,460 150% 121% 76% -51% -19% 44% 90%

Total Traffic – 2005 to 2010

Total Traffic – 2008 to 2010

Unmetered and Metered Traffic – 2005 to 2010

Unmetered and Metered Traffic – 2008 and 2010

On Net Traffic – 2005 to 2010

On Net Traffic – 2008 to 2010

Off Peak Traffic – 2008 to 2010

2010 Unmetered Traffic

2011 Unmetered Traffic

2010 Off Net Traffic

2011 Off Net Traffic

2010 Domestic Peering Traffic

2011 Domestic Peering Traffic

2010 Off Peak Traffic

2011 Off Peak Traffic

2010 Average Cost of Traffic

2011 Average Cost of Traffic