From: cheekai@ncb.gov.sg (Chin Chee-Kai)
Subject: Why are Internet Resources free?
Reply-To: cheekai@ncb.gov.sg
Organization: National Computer Board, Singapore
Date: Tue, 22 Dec 1992 13:41:42 GMT

About three weeks back in early Dec 1992, I posted the following question:

>>>>>   Why Are Resources Free On The Internet?   <<<<<

I am pleased to have received many generous comments and ideas from 
interested netters out there.  It's been very enlightening reading
your responses to the question.  Many thanks to the following people
(in order of date of receival):
        Edward Vielmetti        (emv@msen.com)
        Karleen S. Davis        (ksdavis@silver.ucs.indiana.edu)
        Chris Fedde             (chris@engineer.mrg.uswest.com)
        David Datta             (datta@cs.uwp.edu)
        Tom Fitzgerald          (fitz@wang.com)
        S. Spencer Sun          (spencer@phoenix.princeton.edu)
        Jon Alperin             (jona@iscp.bellcore.com)
        Joshua Yeidel           (yeidel@tomar.accs.wsu.edu)
        Paul E. Hoffman         (phoffman@holonet.net)
        Paul Terray             (popaul@binkley.cs.mcgill.ca)
        Klaus Dimmler           (klaus@cscns.com)
        Chris Siebenmann        (cks@hawkwind.utcs.toronto.edu)
        Stavros Macrakis        (macrakis@osf.org)
        Eric Hammond            (Eric.Hammond@sdrc.com)
        David T. Bath           (dtb@otto.bf.rmit.oz.au)
        Ray Harwood             (RHARWOOD@east.pima.edu)

Below is the full text of my review paper on my posted question.  I am 
leaving a copy of this posting in the gopher tunnel at ncb.gov.sg (port 70)
under "The Internet and Beyond/Why are Internet resources free?".
As our site does not support anonymous-ftp, I apologize to those who
cannot reach this document through such means.

Chin Chee-Kai
Dec 22, 1992
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           >>>>>  Why Are Resources Free On The Internet?  <<<<<
                              Chin Chee-Kai
                              IT Architect
                     National Computer Board, Singapore
                                Dec 1992

The Internet resources are, of course, never quite "free" in the sense of
absence of cost of investment, as was quickly pointed out by Chris Fedde
(chris@engineer.mrg.uswest.com) from USWEST Marketing Resources, Klaus
Dimmler (klaus@cscns.com), and Eric Hammond (Eric.Hammond@sdrc.com).  The 
machines, storage devices, network equipments, software, services, and 
maintenance are all heavily or completely subsidized by national, state, 
organization funds, and personal time or money.  However, many resources 
are publicly accessible without charge, regardless of the expenses incurred 
in setting up and maintaining the services.  Information and services are 
offered in forms of anonymous-ftp, menu-driven telnet sessions, gopher 
accesses, WAIS information searches, and archives of enormous suites of 
softwares, library catalogs, documentations, books, technical reports, and 
discussions. These represent only part of what the entire Internet has to 
provide for free as long as one has full Internet accesses.  This paper 
attempts to collate views on the phenomena of such free service provisions 
to the Internet.  The resulting collection of views reflect that reasons for 
providing free Internet services go beyond just administrative policies and 
decisions, and extend to such social etiquette of doing good for the public.

The Internet has an origin from the universities and academic institutions 
where most information is freely and publicly shared.  Paul E. Hoffman 
(phoffman@holonet.net) pointed out that because of this, majority of the 
users who are either academics, recent graduates, or people who would love 
to be back at college where information is by-and-large free are perfectly 
at ease with providing information and services free-of-charge over the 
Internet.  Some even think that restricting or charging for access to 
frequently required information is unreasonable, intellectually stiffling, 
and immoral.  This opinion is joined by Chris Siebenmann of University of 
Toronto, Canada (cks@hawkwind.utcs.toronto.edu).  On a slightly different 
tone, Paul Terray from Canada (popaul@binkley.cs.mcgill.ca) thinks that the 
universities are not run for commercial business and therefore think more 
in terms of possibilities than money.  This could possibly explain why most 
archiving sites for information, sharewares and freewares are found in 
universities and academic institutions, where knowledge dissemination is 
the chief activity.

People who maintain certain services contribute their times with various 
reasons.  Joshua Yeidel (yeidel@tomar.accs.wsu.edu) who services NetNews 
by responding to postings at Washington State University does it with a 
personal belief that "what goes around, comes around".  There are some who, 
after benefiting from the use of the Internet, decide that they should in 
turn provide their contributions to better the collection of Internet 
services.  For instance, David T. Bath (dtb@otto.bf.rmit.oz.au), Senior 
Technical Programmer of Global Technology Corporation in Australia, 
provides free service of posting answers to questions and some program 
codes so as to "balance the karma" --- in other words to take and to give.  
There are also some who feel that it is being fair that they should also 
provide some kind of services to the Internet public when they have been 
enjoying the services provided by others.  David Datta from University of 
Wisconsin - Parkside runs a music archive at ftp.uwp.edu, and is using his 
(unpaid) personal time to maintain the site because it makes him feel good 
about providing a service to the Internet public, and at the same time gives 
him a means of learning the various human and machine aspects of keeping a 
public domain archive alive and useful.

People who believe that no-cost (or low-cost) computing should be available 
to one-and-all demonstrate it by providing exactly such kind of services.  
An example pointed out by Karleen S. Davis (ksdavis@silver.ucs.indiana.edu)
is the Nyx free Internet site at nyx.cs.du.edu where Internet 
accounts are allocated to applicants free-of-charge.  The 'Philosophy of 
Nyx' column explains their proof-of-concept approach to the setup of Nyx.  
Things are run on donated hardware, and personnel times involved in 
maintaining the system are contributed by a number of those who hold the 
Nyx spirit.  On the other hand, Tom Grundner's Freenet is perhaps a 
notable largescale manifestation of free computing concept.  In this case, 
Case Western Reserve University provided some seed resources (such as 
hardware and Tom Grundner himself) to initiate a 'big bang' which 
eventually grows by community effort to its current size.  The 'Concept' 
section of Freenet says it all:

        "Everything ... is there because there are individuals or 
        organizations in the community who are prepared to 
        contribute their time, effort, and expertise to place it 
        there and operate it over time.  This, of course, is in 
        contrast to the commercial services which have very high 
        personnel and information acquisition costs and must pass 
        those costs on to the consumer."

On the commercial side, Edward Vielmetti (emv@garnet.msen.com), 
Vice President for research in Msen Inc., highlighted that the technology 
to bill for network services is still immature.  His company has thus 
decided to provide some services for free.  Tom Fitzgerald (fitz@wang.com) 
from Wang Labs likewise thinks that the cost of tracking authorized users 
and billing for them for using certain services will end up more than 
doubling the required investments in resources and personnel.  Both James
Deibele (jamesd@techbook.com) and Stavros Macrakis (macrakis@osf.org) also 
remarked that there has not been much in the Internet establishment to 
support a rational chargeback scheme.  The lack of provably cost-effective 
means of charging for network services has prompted certain vendors and 
companies to offer some useful services for free.  Besides, Edward Vielmetti 
added, free services might get his company's name sufficiently well-known 
to sell things for money.  They also help in attracting contracts and 
consulting for the company.  David T. Bath concurs that free services 
enhance the reputation of his company, and place his company in a more 
advantageous position than those who don't provide similar services.  
This way of attracting business is also noted by Jon Alperin 
(jona@iscp.bellcore.com) from Bellcore.

Furthermore, Jon Alperin feels that not all can afford or are interested 
in bearing the overheads incurred in selling, supporting, maintaining and 
protecting softwares.  This is particularly true for amateur and part-time 
programmers, although they are not necessarily the only group of people
who may possibly bear these overheads.  He offers this as a possible reason 
for the freewares and softwares found on most anonymous FTP sites.  On the 
other hand, one's ego sometimes prompts one to offer something for free in 
the hope of being praised or given encouraging feedbacks.  Eric Hammond 
(Eric.Hammond@sdrc.com) likewise feels that the satisfaction of seeing others 
run his software and services gives him further inspiration to provide public 
domain services.

In conclusion, the reasons for the free-service phenomenon found on the 
Internet appears to be related to the following (presented in no particular
order):
        (1).  The Internet's orgin is a non-profit network.
        (2).  Most academic nodes on the Internet has an obligation
              to disseminate knowledge.
        (3).  Smaller nodes owned by academic-related people (eg recent
              graduates) tend to continue the tradition of (2).
        (4).  "Balance the karma (or zen)" theory --- one should inject
              information and services into the net when one is using
              information and services provided by others.
        (5).  Doing something good for the network public.
        (6).  Proof of ideas that dictate free-computing and free
              information for everybody.
        (7).  Technology to charge for information services is still
              immature and large overheads are incurred if charging
              is imposed.
        (8).  Free services help in promoting commercial companies'
              reputation, and put them in a more competitive position
              than those who don't.
        (9).  Amateurs and part-timers cannot bear the costs involved
              in marketting, supporting, and maintaining their services
              (or programs).  So providing things for free or 
              charge-by-trust become the alternatives.
        (10). Boost of ego and personal satisfaction to see others
              use one's services.
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