August 29th, 2007 by Gordon Cook
For the last few days i have been doing research on the proposed NLR I2 merger. The gist of my research is that the merger is potentially a bad deal for NLR. You may find out why by reading the attached pdf or grabbing from the website at the URL below.
url is http://www.internet2-nlr.org/
Grab the NPT Final Report and read
especially sec 2.2.3
3rd paragraph down “using public data…..”
NPT recommendation is for the merged organization to keep both physical network infrastructure (NLR’s owned lit-fiber and I2’s Level3-managed network). If the merged organization can afford both costs and yet not raise prices to the users then this would be fine. However, some think that this would not be possible and in fact the merged organization would have to get rid of one of the 2 networks and that will likely be NLR’s network.
see also tables 1 and 2 on page 13
this table shows why both network infrastructures would be unlikely to survive. Cost savings alone in year one is 12 million by killing NLR I don’t think I2 would be killed
ALSO LOOK AT TABLE 3 PAGE 14
comparative prices. Here you see that if NLR layer-1 network goes away then the users will be facing much higher Internet 2 prices. The table shows a comparison of current prices to the respective user communities. NLR members pay much less than I2 members. The I2 prices under the new Level 3 contract are high and by the time that I 2 overhead is added they become MUCH higher.
I have also learned that the Internet2 board yesterday voted to approve the merger and that the NLR board is scheduled to meet later this week to take a similar vote.
the merger as currently proposed in my opinion would be a disaster that would kill the crown jewel of Network infrastructure in the United States.