1. CENIC Business Model Quilt Fiber Workshop June 21, 2004 Quilt Fiber Workshop June 21, 2004

2. CENIC Associates California Institute of Technology Stanford University University of Southern California University of California System 10 campuses California State University 24 campuses, 6 off-site center California Community Colleges 107 colleges, 16 district offices Potential of 53 more off-site centers California Institute of Technology Stanford University University of Southern California University of California System 10 campuses California State University 24 campuses, 6 off-site center California Community Colleges 107 colleges, 16 district offices Potential of 53 more off-site centers

3. CENIC Networks CalREN/XD (eXperimental Development) Custom per requirements CalREN/HPR (High Performance Research) 10Gb backbone, serving research campuses CalREN/DC (Digital California) “Production” quality backbone serves as reliable, robust, intrastate network providing commodity peering, transit, QoS for Video over IP, etc. CalREN/XD (eXperimental Development) Custom per requirements CalREN/HPR (High Performance Research) 10Gb backbone, serving research campuses CalREN/DC (Digital California) “Production” quality backbone serves as reliable, robust, intrastate network providing commodity peering, transit, QoS for Video over IP, etc.

4. CENIC Optical Network Private fiber IRUs, DWDM hardware provide 2.5G and 10G wavelengths Supports CalREN/DC, CalREN/HPR and waves for CalREN/XD Base costs are covered by /DC and /HPR network participants Private fiber IRUs, DWDM hardware provide 2.5G and 10G wavelengths Supports CalREN/DC, CalREN/HPR and waves for CalREN/XD Base costs are covered by /DC and /HPR network participants

5. Funding the Network(s) Network costs include: General Operations Network Operations Center Allocation of Optical Network Equipment Maintenance Equipment Replacement Allocation Network costs include: General Operations Network Operations Center Allocation of Optical Network Equipment Maintenance Equipment Replacement Allocation

6. Equipment Replacement Funds set aside each year Amount is determined by: Cost of current hardware/software Life expectancy of hardware Replacement fund has allowed for network growth w/o increase in Associate fees! Funds set aside each year Amount is determined by: Cost of current hardware/software Life expectancy of hardware Replacement fund has allowed for network growth w/o increase in Associate fees!

7. Multiple Cost Centers Some services are funded by “subscriber” fees Video over IP (MCUs in core, QoS) ISP transit Abilene/Internet2 Some services are funded by “subscriber” fees Video over IP (MCUs in core, QoS) ISP transit Abilene/Internet2

8. ISP as Additional Service Monthly minimum Mbps commitment Costs include hardware, operations, accounting, equipment replacement Cost model includes 10% surplus for growth without mid-year rate increase Surplus funds stay within program Rates ($/Mbps) have dropped over 4 years of service ($260, $200, $126, $95) Monthly minimum Mbps commitment Costs include hardware, operations, accounting, equipment replacement Cost model includes 10% surplus for growth without mid-year rate increase Surplus funds stay within program Rates ($/Mbps) have dropped over 4 years of service ($260, $200, $126, $95)