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Cost sharing amongst the service providers

The model for cost sharing for DE-NIC services was developed along the lines of the proposal of the DE-NIC commission:

The DE-NIC has taken some measures and found, that about 20% of their workload could not be assigned to a service provider. Resulting from this, funding the DE-NIC was split into two parts:

of the costs are seen as a base funding and split equally among the members.
of the costs are usage dependend. This 80% are distributed to the members according to the workload, each of them poses on the DE-NIC.

The first 20% are distributed equally, with no distinction on the size of each service provider. As the end users generating this workload are seen as prospective customers, we cannot foresee the success in getting these users as customers for each service provider.

If new service providers join the consortium, there are no usage figures in advance. Those service providers take their share in the 20% and their usage is set to 5% of the overall usage for the first six months.

After six month, their real usage is evaluated and charged for the last six months.

This will allow a new service provider to enter the business at a reasonable cost. Right now, the monthly fees for a new service provider are about 1/2 FTE or a digital 64kbps national leased line, which is seen reasonable for having access to this crucial infrastructure.

Andreas Schachtner
Fri Apr 28 15:28:39 MET DST 1995