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From: schoff@PSI.COM ("Martin Lee Schoffstall")
Newsgroups: comp.protocols.tcp-ip
Subject: Re: Internet/NSFNet proposal to be run by IBM -- call to action!
Message-ID: <9010301901.AA20615@psi.com>
Date: 30 Oct 90 19:01:58 GMT
References: <9010292103.AA27879@s6.Morgan.COM>
Sender: daemon@ucbvax.BERKELEY.EDU
Organization: The Internet
Lines: 52

Jordan,

Circa 1985 (half the lifetime of operational tcp/ip ago) a number
of non-profit organizations and consortiums were put together
to address the perceived needs, the included NYSERNet, SURANET,
BARRNET, etc, they were started as non-profits for the reasons
of that period.  In the same period UUNET started.

In 1990 PSINet fissioned off of NYSERNet, and it would appear ALTERNet
fissioned off of UUNET, for a number of reasons.  For PSINet they
included:  investment in infrastructure, tax issues including new
IRS reporting and the concept of taxation on "unrelated business
income" for a non-profit, and the concept of fair business practices,
where a non-profit for many reasons (including taxation, but also
liability) competes with commercial organizations unfairly.

[This is why RPI pays no taxes on its physical plant or income, except
	on the portion that is related to its growing technology park]

It has been rumored that a number of the mid-levels are discussing ways
to turn their services into for-profit endeavors for possibly many
of the reasons of above.

But ironically we have a "back to the future" movement of ANS repeating
what was done in 1985, hence the A in ANS "Advanced".  But of course
this is the story for 1990, we'll see how things evolve.

Marty

PS:  There is a great ANS marketing article in the Link Letter
(contact nsfnet-linkletter-request@merit.edu) front page, complete with
a picture of "Uncle Al", children, (but no flag) supported
by NSF Grant No. NCR 8720904 no less (at least according to
the publication)

PPS:  I thought I'd cc com-priv on this.

--------------

 Christopher Raczka <chris@ecdnt5.enet.dec.com> writes:

 	I also think the "other side" of the story does need to be told
 	and this much I do know...  Sometime in September, Merit, IBM
 	Corp, and MCI established Advanced Network and Services Inc.
 	(ANS) ANS, a NOT FOR PROFIT organization, is to manage and
 	operate the NSFNET backbone under subcontract to Merit

 Funny to see the NOT FOR PROFIT emphasis.

 Wasn't NYSERNET also started that way?

 /jordan