US:PA-4: Re: consortia - customers or service providers?
Re: consortia - customers or service providers?
Gene Hastings (hastings@info-ren.org)
Thu, 9 Oct 1997 10:36:07 -0400
The issue of customer vs. provider has a number of interesting ramifications.
A number of State oriented networks (though not in all cases owned and/or
operated by the state) have been trying to decide over the past months
whether they intend to be members of aggregations or consortia, or whether
they will simply be providers. Where they are in a position to be providers,
it may entail jumping through fewer hoops. On aspect the people at Michnet
have pointed out is that as a provider (their choice of role), they can apply
more in the way of indirect and staff costs to services for which the
customers are eligible for discounts.
For example: if, as part of their connectivity service, Michnet also provide
an operations center and network management, the direct and indirect costs
(salaries, computers, software, even information services, if they use them)
are eligible because they are part and parcel of the provision of their
service.
I can even imagine an extreme case where a school or library system is BOTH a
customer and a provider. Say an IU is granted status as a school for the
purpose of Universal Service. They may get discounted service for their
internal use. They may also act as a provider for discticts in their region,
precisely because of what can be included at that end. Of course, they would
have to buy in to the paperwork of collecting the check from the Schools and
Libraries Corporation. They might even simultaneously be a provider for the
rural health community as well.
With this consideration, an alternate strategy for municipalities is to set
up as provider, either as actual service provider or demand aggregator, and
not as a member of a customer consortium.
Gene