How the Internet is Funded

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How the Internet is Funded

• I590 Presentation
• Matt Hottell
• 9/30/03

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Funding the Physical Infrastructure

• There have been 3 main phases in the funding of
  the Internet in the US
• ARPA phase 1969-1990
• NSF phase 1990-1995
• Commercial phase 1995-present

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ARPA Phase

• Starting in 1969, the DoD funded the early growth
  of the Internet by supporting the ARPANet.
• ARPANet traffic was supposed to be limited to
  defense and research purposes only
• By the middle of the 1980s other players started
  to build around the ARPAnet

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ARPA Phase

• 1984 NSF starts contracting for the building of
  a national backbone (56kbps) that connects
  research universities.
• At this time, other government agencies, and some
  commercial agencies and academic institutions
  begin building regional networks

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ARPA Phase

• The NSF Acceptable Use Policy through the end
  of the 1980s limited some uses of the Internet
  by commercial interests

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ARPA Phase

• By the end of the 1980s, the ARPANet was no
  longer the core of the Internet in the US
• In 1990, ARPA decommissioned the ARPANet

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NSF Phase

• By 1990, the NSF is the dominant backbone
  internet provider
• In 1990, the acceptable use policy is relaxed,
  allowing more commercial use.
• November, 1990 first WWW page
• The first Commercial Exchange Point (CIX) is
  established in 1991

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NSF Phase

• In 1994, NSF awarded contracts to replace and
  manage its backbone network

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NSF Phase

• In 1994, NSF awarded contracts to replace and
  manage its backbone network
• Part of the replacement includes 4 Network Access
  Points (NAP) to be built by the four baby Bells
• San Francisco, Chicago, New York, DC

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NSF Phase

• In 1995, NSF decides that the commercialization
  of the Internet has caused it to grow beyond the
  research scope of the NSF mission

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NSF Phase

• In 1995, NSF decides that the commercialization
  of the Internet has caused it to grow beyond the
  research scope of the NSF mission
• The NSF completely turns over its backbone to the
  baby Bells to run as commercial ventures

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Commercial Phase

• Starting in 1995, the funding for the physical
  Internet became a mostly commercial venture

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Commercial Phase

• Starting in 1995, the funding for the physical
  Internet has become a mostly commercial venture
• However, in 1997 NSF approved funding for a new
  high-speed research network Internet 2

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Internet Architecture

• The high-speed backbones form the core of the
  network.
• Qwest, MCI, Sprint, ATT,etc

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Internet Architecture

• The high-speed backbones form the core of the
  network.
• Qwest, MCI, Sprint, ATT,etc
• Backbones have access points in major cities

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Internet Architecture

• The high-speed backbones form the core of the
  network.
• Qwest, MCI, Sprint, ATT,etc
• Backbones have access points in major cities
• Backbones (vBNS) interconnect with each other at
  NAPs, allowing regional networks to talk to each
  other.

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Internet Architecture

• The companies that operate the NAPs charge the
  NSPs for access to the rest of the network.
• IU has a direct connection to the Chicago NAP

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Internet Architecture

• Network Service Providers are service providers
  who operate backbones

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Internet Architecture

• Network Service Providers are service providers
  who operate backbones
• Internet Service Providers pay NSPs for access to
  the NAPs

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Internet Architecture

• Network Service Providers are service providers
  who operate backbones
• Internet Service Providers pay NSPs for access to
  the NAPs
• There may be several layers of ISPs

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Internet Architecture

• Network Service Providers are service providers
  who operate backbones
• Internet Service Providers pay NSPs for access to
  the NAPs
• There may be several layers of ISPs
• P4 in a closet vs AOL modem banks

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Internet Architecture

• Many NSPs and ISPs have smaller connections to
  each other in major cities.
• These connections are called Metropolitan Area
  Exchanges

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Peering

• ISPs at the same level generally agree to forward
  each others messages without charging.
• This contributes to the idea of a free internet

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Money Flow

• The system of machines and cables that carry the
  internet at each level are paid for by the level
  of subscribers below.
• Money flow matches the flow of datagrams to the
  NAPs

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