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CENIC Business Model

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

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CENIC Business Model

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  1. CENIC Business Model 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

  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.

  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

  5. Funding the Network(s) • 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!

  7. Multiple Cost Centers • 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)

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