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Profile: EUnet

Profile: EUnet

European networking priorities

Discussions within the European Internetworking community are often led by the government-sponsored national and international research networks. Those discussions often focus on the quest for "big bandwidth" and the massive governmental support, funding, and intervention that it demands. However, well before these discussions became prominent, a different model of infrastructure building was at play, steadily creating a large fraction of the greater European internet.

The most extensive and longest-operating European champion of this different model is EUnet.

This article

This article overviews EUnet and its demonstration of an alternate and highly successful route toward the development of the Internet and, most importantly, in how it serves real customers (not just the perennially invoked, yet somehow never-present "users"). It traces the history of EUnet, and our philosophies of service provision and network economics. It is not intended to be an indictment of the desire or hard work done by many in the quest for big-bandwidth academic networking before the marketplace will support it. Rather, it points to an approach which has produced significant end-user service and will certainly bring us to substantially greater bandwidth levels in the near future (if American experience is any guide, it will not be more than a few years away).

EUnet snapshot

EUnet began in 1982 as a UUCP based network concentrating on electronic mail. EUnet has since grown to become perhaps Europe's most extensive Internet-related service organizations, serving 10,000 sites and networks via 50 points of presence. With service centers in 27 countries providing coverage from Iceland to Vladivostok and from the Arctic Circle to Northern Africa, EUnet has one of the widest geographical spans of any Internet provider in the world. Traffic is carried nationally, internationally, and intercontinentally over EUnet's own infrastructure. All of this has been accomplished without direct major governmental sponsorship or funding.

EUnet core services include E-mail (RFC-822 and X.400), File Transfer (FTP), Remote Login (TELNET), Network News, and Archive Access. Connectivity is available via leased, X.25, ISDN, and analog dial-up connections, using IP and UUCP protocols.

EUnet National Service Providers include:

Austria			Belgium
Bulgaria		Czech Republic
Denmark			Finland
France			Germany
Great Britain 		Greece
Iceland 		Ireland
Italy 			Luxembourg
Netherlands 		Norway
Portugal 		Slovakia
Slovenia 		Spain
Switzerland 		former Soviet Union
Tunisia
EUnet Providers being set up
Algeria			Egypt
Poland			Romania

Early history

EUnet was announced by members of the European computer industry and researchers from institutes and universities at the April 1982 meeting of the European Unix Users Group (in 1990 the EUUG was renamed "EurOpen"). At that time, there were no generally-available means for researchers or anyone else to exchange electronic mail either internationally within Europe or across the Atlantic to the United States. In most European countries, there were no national research networking organizations (notable exceptions were JANET in the Great Britain, and HEPnet), and most institute to institute communications were provided in an ad hoc fashion, if at all.

The UUCP and USENET developments in the United States had by 1982 already shown that a rather anarchistic, low-overhead, yet effective system of networking was possible without major government or institutional support. However, the differences among the countries of Europe meant that the simple "find a willing host and exchange traffic" model of the USENET could not be transported wholesale to Europe; the much higher European telephone tariffs, the frequent telecoms border crossings, and differences in national languages, technical development, and regulations required a different solution.

The approach chosen revolved around the designation of a single point of concentration for E-mail exchange within each participating country. Each national concentration point would then forward all international mail to a single European concentration point. This two layer hub-and-spoke arrangement proved to be the perfect European interpretation of the original USENET approach. Groups participating in the early days of EUnet included the Institut National de Recherche en Informatique et Automatique (INRIA) in Paris, the Royal Institute of Technology in Stockholm (KTH), the University of Kent at Canterbury, the University of Copenhagen, and the University of Genoa. The Center for Mathematics and Informatics (CWI) in Amsterdam acted as the European hub and network operations center, providing connectivity within Europe and to the United States.

EUnet transport was originally based upon UUCP, and services were primarily RFC-822 E-mail and Network News. Within a few years, nearly all of the European Community region was covered, which provided enough income and traffic so that by 1986 our connection to the US was upgraded with to leased line running SLIP. In early 1987, leased lines were in use between the European and national NOCs; later that year leased line IP services were provided directly to subscribers (today marketed under the name InterEUnet).

Access to EUnet services was originally restricted to members of the research and development community, again following the American model (this time unfortunately). This was mandated by monopolistic telecoms regulations in the European countries, and reinforced by the general pre-commercial practices of the day. This constraint no longer applies, as we will see below. Each national EUnet networking team worked in conjunction with a national EUUG group. The EUUG overall provided support, cohesiveness, and a common forum for EUnet development.

National EUnet evolution

Nearly all National EUnets were begun by networking enthusiasts at universities or national research institutes. Starting with a few workstations and modems, most began by providing simple E-mail and Network News services to academic institutions, and later to research groups in industry. Each subscriber was required to pay for the networking services they used. As the number of subscribers grew, it eventually became possible to obtain a leased line to the Amsterdam NOC, thus enabling national distribution of the full set of Internet services. Steady evolution permitted EUnet staff to develop an in-depth understanding of the economics and technology of service provision. It also continues to be a very effective start-up model for use in countries which, now just beginning to join into the integrated economy of Europe, have serious national telecoms infrastructure problems to overcome. And, the "pay actual costs of use" approach imposed economic discipline, still sorely lacking in many government-sponsored nets, from the subscriber through the entire EUnet organization. EUnet subscribers have over ten years of experience in understanding how networking fits into their overall cost picture; there are no mysteries about actual cost and its relationship to the value of network use. EUnet has proven that end-use of networks is economically viable and desirable, even given the artificially high European telecom prices and the difficult technical circumstances in Eastern Europe.

As other nets arrived

As other networks began to arrive (such as EARN and NORDUnet), and the research networking community developed, EUnet joined a variety of cooperative efforts, including participating in the initial discussions which led to the establishment of the CERN- Amsterdam link consortium, which included EARN, IBM/EASInet, CERN and NORDUnet. EUnet was also involved in backup and other service agreements with other international networks such as NORDUnet (from whom we obtained our Nordic connectivity for several years) which resulted in what was known as the Stockholm-Amsterdam link. EUnet was present in the initial discussions which led to the formation of the Ebone, which stood in large part on the bandwidth and membership of the CERN-Amsterdam link consortium and the Stockholm-Amsterdam link. EUnet's Daniel Karrenberg (now leading the RIPE NCC) made the original proposal to form RIPE, which provides a forum for cooperation between European IP providers.

Early availability and impact

EUnet has been either the first or among the first Internet-related service providers in nearly every country in which it operates. In particular, EUnet is proud to provide to have provided early access to Bulgaria, Hungary, Czechoslovakia, Yugoslavia, and the Soviet Union (so early that most of those countries no longer exist).

During the failed Soviet coup of 1991, EUnet, through it's local provider RELCOM, was a key source of public information within the Soviet Union and to the outside world. This was due to the fact that many western news agencies used EUnet to transfer information between the Soviet Union and the rest of the world.

The commercialization of EUnet

By 1990, EUnet recognized the need for major change. The growing success of the Internet in general and EUnet in particular meant that the EUnet NOCs were outgrowing their home institutes, and that a new organizational approach to running the network was required. The growing requirement for equipment and leased lines resulted in a level of risk and need for capital which could not be supported under academic or user group umbrellas. A European-level manager was hired in the beginning of 1991, and analysis and planning were undertaken to determine the shape of EUnet in the 1990s. In 1992 it was agreed that EUnet would be formally constituted as a commercial company, which has now been accomplished at two levels: the national EUnet service providers moved from their institutional homes and reorganized themselves as commercial companies and, in December 1992, EUnet Limited of Ireland, a for-profit company, was formed. All European-level activities within EUnet are performed under EUnet Limited, which is owned by the national EUnets and EurOpen (formerly EUUG) which holds a minority position.

Business management structure

The earlier informal decision-making process has been replaced by a more regular business structure. There is a board of Directors, elected by the shareholders. An informal, thrice-annual "backbone meeting" has been replaced by separate technical and business meetings. The technical meeting is attended by European and national level technical leaders from the national EUnets, who address issues such as architecture, operations, security, and new service development. As required, working groups are spun off to execute well-defined, fixed-duration tasks. The business meeting is attended by European and national EUnet managers and marketing staff, who address issues such as internal cost recovery, strategy, and business relations with suppliers and other providers.

Day-to-day business management is performed by a chief executive with the support of an executive committee and staff.

Infrastructure independence

In planning for the commercialization of EUnet, three alternatives were investigated for our long-haul traffic requirements: using the proposed Operational Unit services (now using the name EuropaNET), the Ebone, or to significantly expand upon our own router network. Use of EuropaNet was rejected when we discovered that the funding organization for EuropaNet would not allow any but the government-sponsored national research networks to take an equity position in that network. Use of Ebone was rejected for two reasons: first, Ebone's uncertain status made it inappropriate for use as the basis of a commercial service; second, it became apparent during 1992 that the Ebone, being largely made up of government-sponsored research networks, could not possibly share the interests of EUnet in the long run, and hence could not be expected to respond effectively to the requirements of our growing non-research subscriber base. As a result of this analysis, EUnet decided in 1992 to complete the process of developing its own infrastructure.

EUnet infrastructure now extends across nearly the entire EUnet system, including a fractional T1 from the Amsterdam NOC to UUnet in the United states (and on from there to the Commercial Internet eXchange (CIX), and NSFnet), the cost of which is partially supported by UUnet Technologies. EUnet maintains its own internal leased lines from Amsterdam to nearly all European EUnets, and this summer installed the first commercial Internet terrestrial link to Moscow (via EUnet NOCs in Copenhagen, Helsinki, and Tallinn). The majority of EUnet internal links are today either 64 or 128 kb. Traffic and bandwidth on most edges is doubling roughly every 6-8 months. The EUnet core, consisting of lines and router equipment at the EUnet NOCs, is made up almost exclusively of cisco routers primarily running the BGP3 routing protocol.

EUnet's decision to develop its own infrastructure enables us to obtain an appropriate degree of control to ensure the level of service quality demanded by our subscribers.

Wholesale-retail structure

EUnet today envisions itself as a commercial wholesale-retail network. That is, EUnet provides three vital components of Internet-related service provision for its subscribers: local customer service, extensive infrastructure, and managed access to the world-wide Internet. EUnet has fully-manned network service bureaus in each country in which it operates, and at the European level in Amsterdam. Each of our service teams is "home grown" and has years of experience; they are familiar with their national networking environment including regulations, the other providers, PTTs, and suppliers. EUnet operates its own infrastructure both intra-EUnet and to other key service providers and interconnection points. Finally, EUnet manages internetworking relationships with the other players in the Internet and in the network services marketplace through a variety of bi-lateral and group agreements.

Availability

EUnet services are available to any organizations or entities within the EUnet operating region. We view any restrictions on use and users besides those regarding "good network citizenship" (for example, correct technical operation of equipment) or within the scope of local law, to have done real harm to the development of the Internet. Any constraint which reduces the potential customer base of the internet holds back the involvement of communities which could greatly benefit from networking, as well as to keep providers more dependent upon non-market sources of income.

Funding, economics and cost recovery

Each EUnet layer must pay for itself (national and international), each service must pay for itself, and each subscribing user (or user organization) must pay for the services they use. At first blush, this may appear so obvious as to not require stating, but in the European Internet it is not entirely common.

EUnet has generally avoided the European networking obsession with scale-before-demand and government funding. Most government-sponsored networks seek the holy grail of high-bandwidth "pipes" (from 1990 to 1992 this mythically-important bandwidth was 2 Mbits/sec, it has recently been 34 Mbits/sec) and for the government funding required to support it.

The EUnet view has instead been to build infrastructure by accretion: to find ever-increasing numbers of subscribers, each of which will pay for the infrastructure that they actually use. Factors such as EUnet's progress along the learning curve, the slowly-declining costs of telecom bandwidth in Europe, and the economies of scale inherent in networking, allow EUnet to increase bandwidth capabilities ahead of the aggregate requirements of our subscriber base. With our transition to commercial status, this process has been significantly accelerated due to our greater ability to obtain and use capital.

EUnet has generally not pursued significant grant-hunting in the past: major grants can be a dangerous diversion from the business of networking and, if awarded, can have dangerous side effects; they tend to make providers lose track of the critical linkage between internal costs and the prices actually charged subscribers, and tempt the provider to drift away from a lean internal cost structure. This is reinforced by the typical experience of grant recipients turning into report generators.

Internally, EUnet has a cost replacement structure which provides modest temporary discounts to starting EUnets. This follows from our agenda to extend the internet to new regions and is distinct from the regressive charging model of the Ebone and many other networking organizations.

Development of the periphery

Besides our core networks, EUnet is currently bringing on board new service teams in Algeria, Poland, Egypt, and Romania. These groups are beginning with dial-up connections and are expected to advance to leased-line connectivity in the near future. When bringing on board new nets such as these, EUnet frequently loans equipment in order to increase the pace of connectivity and service development. We are also happy to advance networking by other means: EUnet today donates free trans-Atlantic E-mail transit to FIDOnet.

What catches mice?

The European networking community of the 1980s (and perhaps even today) has been dominated by the industrial policy notions embodied in the push for the ISO OSI networking model. EUnet has fortunately never suffered from this variety of religion. We like to take a position similar to that taken by Chinese Premier Deng Xiao Peng, who revolutionized that economy under the slogan (we paraphrase): "Who cares if the packets are black (OSI?) or white (IP?), as long as they deliver data?". We select technology as a function of subscriber demand, usability, economy, and interoperability. Our choice of IP technology was not so much rare wisdom as it was a consequence of the discipline imposed by our self-funding approach.

A view of the future of networking economics

Now that the Internet has grown to be of significant size, it has attracted the attention of professional economists, a few of whom argue that theory shows that the Internet cannot possibly be a market. This is a terribly sad conclusion, again reinforcing Economics' reputation as the dismal science. If the Internet cannot be a market, a wonderful opportunity for wide-open competition and the innovation, quality, availability, economy, and transforming power that it promises will be lost. There is of course no way to predict how this will finally play out, but the Roman Rule comes to mind: "One who argues that something cannot be done should take care to stay out of the way of the one who is doing it." In the long run, the choice for the Internet is simple: the same high-cost, bad-service model enjoyed by monopoly service subscribers, or the chance for a reshaping of economic life around a fundamentally new relationships between distance, observation, and action.

Closing

EUnet demonstrates that an effectively large organization may be constructed by like-minded technologists and business people without the supposedly requisite "big science" approach of government. Modern size- and price-reduced computer and communications equipment which have so dramatically popularized computing, have created new freedoms in exceptionally wide area networking. EUnet and other similarly structured commercial networks are an important vehicle for uncovering the full potential of modern networking technology and the promise it holds for improving relations between people, and to their work.

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Glenn Kowack is Chief Executive of EUnet Limited, and has been with EUnet since early 1991. He holds degrees in Mathematics and Psychology from the University of Illinois at Urbana-Champaign. During the 1980s he was a Senior Director at Gould Electronics' Computer Systems Division, where he directed UNIX operating system and related software development. He has also been a producer and presenter of radio programs and was the Chairman of Prairie Air, Inc., which operates FM station WEFT. He can be reached as: glenn@EU.net.