Cost Recovery Information FY 2003

The ICN Policy Committee has approved a cost recovery model to help fund the future growth of the Illinois Century Network. The Illinois Century Network is the most successful state network in the nation and has experienced unprecedented growth in both connections and utilization of the network.

The ICN has had level funding since its inception in 1999 to the present. This funding has facilitated the construction and operation of the network without additional funds and will continue to be self-sufficient through at least mid-2002. Growth in the number of institutions connected has increased from 3,000 to 5,600 in less than two years. Growth in utilization, consisting of educational use of the network, continues to expand at a rate of 80% -100% per year on key legs of the network. In order to continue to deliver the reliable, robust services ICN constituents demand and to replenish network resources to keep pace with growth, a cost recovery plan was proposed and approved at the ICN Policy Committee Meeting on November 29, 2001. This model will help ensure that the ICN continues to be the "best value" for connected institutions.

The cost recovery model became effective July 1, 2002. If you have further questions please contact the ICN at 877.844.2724 or e-mail us at for answers within one workday. Information in this section is subject to change according to ICN policy and funding without notice.

	Frequently Asked Questions
	Primary and Non-primary constituents
	ICN Provided Services
	Primary Constituent Information
	Directly Connected Non-Primary Constituent Information
	Indirectly Connected Non-Primary Constituent Information
	Cost Recovery Pricing Structure
	Letters to ICN Constituents on Cost Recovery
	Why the ICN is the Best Value

Primary Constituents and Non-primary constituents

• Primary constituents are K-12 schools (public and private), institutions of higher education, libraries and museums.
• Non-Primary constituents are all others including research institutions, State agencies, units of local government and other local entities that provide services to Illinois citizens.

ICN Provided services

• High speed access to the commercial Internet and to one another via the backbone network
• Regional Technology Centers (RTC) located strategically throughout the state provide certified local technicians in order to support network activities and to maintain reliable connections. (The ICN had a reliability rating of 99.95% over the last year with less than five hours of unscheduled downtime.)
• One hundred percent (100%) of all regional technical staff are fully certified having passed demanding industry tests.
• A state-of-the-art Network Operations Center (NOC) is located in Springfield to coordinate the network backbone and provide support for technicians at the RTCs. A back up center is under development at the RTC 1 office in Chicago.
• Regional connection points throughout the state that allow all constituents to connect without using long distance circuits. Where possible, additional network connection points are extended closer to communities of interest in order to further reduce constituent costs.
• Primary constituents will receive a specified amount of bandwidth to support educational applications and delivery of educational content.
  

Primary Constituent Information

Each primary constituent will receive a baseline amount of transit across the network for which there is no charge. Transit above the baseline will be charged at a rate based on actual costs to be determined annually. The FY2003 rate is $300 per megabit per second (Mbps) per month. For users with a T1 connection, use beyond the baseline is not an issue. Larger institutions are able to prioritize traffic to match institutional priorities (e.g., streaming video or Internet2 would likely be higher priority than student recreational use of the network). Institutions with larger access connections can be physically limited by mutual agreement to a specific amount of bandwidth.

• Public and private K-12 institution baseline bandwidth is determined by published enrollment figures provided by the Illinois State Board of Education.
• Public and private higher education baseline bandwidth is determined by published student FTE (full time equivalent) headcount provided by the Illinois Board of Higher Education and the Illinois Community College Board.
• Public libraries and public museums baseline bandwidth is set at 1.5 Mbps.

Each constituent will continue to pay for the circuit to connect to the network (as is the case in connecting to any Internet Service Provider). Each constituent will pay for the equipment required at their location to maintain the connection. Port charges may also apply for additional circuits above those required to provide baseline bandwidth.

The cost recovery model goes into effect July 1, 2002. Rate limits for existing usage will be in effect immediately. Also effective July 1, 2002, all ICN primary constituents will be required to pay access circuit costs. Advance notice will be given to all constituents allowing time to plan and budget accordingly. Bills will be sent by the ICN on a monthly basis. Advance notice of changes in baseline bandwidth and cost per megabit per month will be given to all constituents no later than November of each year to allow sufficient time to plan and budget.

Directly Connected Non-Primary Constituent Information

Non-primary constituents will pay for all transit at the current rate of $300 per megabit per second (Mbps) per month in addition to their access circuit cost and in some cases port fees may apply. Non-primary constituents have always paid access circuit costs. In locations where the ICN provides subsidized access to the network, non-primary constituents will also be charged a proportionate share of these costs. The port charge for a T1 is $55 month.

Non-primary constituents will enter into a facilities-based lease and will be physically limited by mutual agreement to a specific amount of bandwidth to meet particular needs. Charges for transit are separate from access circuit costs, which represent an agreement between the constituent and the local telecommunications provider.

The cost recovery model went into effect July 1, 2002. Rate limits for existing usage will be in effect immediately. Advance notice will be given to all constituents allowing time to plan and budget accordingly. Bills will be sent by the ICN on a monthly basis.

Indirectly Connected Non-Primary Constituent Information

Indirectly connected non-primary constituents (sites connected by community networks, connected to the ICN through another entity, or etc.) will be charged the current $300 per Mbps or a minimum flat fee of $225. The flat fee of $225 will be applied in situations where the constituent requires less bandwidth than is currently available, but it is not possible for the ICN to apply a rate limit. The fee is based on the bandwidth of ½ T1, which is a reasonable estimate of the bandwidth most constituents use.

If the ICN is able to rate limit a non-primary constituent connection, the ICN will apply the rate limit requested by the constituent, and will apply all applicable cost recovery charges based on $300 per Mbps. Port charges will be assessed where applicable. When an indirectly connected non-primary constituent requests ICN management of their router for the purpose of applying rate limits, the ICN will provide management, where technically possible, at the current rate of $20 per month.

When a primary constituent connection provides the direct connection to ICN, the ICN provided baseline for that constituent will be increased by the amount purchased by the indirectly connected non-primary constituent(s). In this way, a primary constituent's baseline bandwidth is not negatively impacted.

This policy is effective immediately for all new connections, and will become effective July 1, 2003 for all existing connections. Advance notice will be given to all constituents allowing time to plan and budget accordingly. Bills will be sent by the ICN on a monthly basis.

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