Year 2001 Internet Traffic Subscriptions

1.       Summary

Internet traffic subscriptions are charged to business areas at the beginning of each year. The subscription is based on an estimate for the current year together with an adjustment to reflect actual costs for the previous year.

A spreadsheet showing Internet traffic subscriptions by business area, taking account of projected traffic growth for the year 2001 can be found at http://netcomms.anu.edu.au/charging/subs2001.html. The spreadsheet also shows the adjustment for 2000 based on actual usage, and the net charge to be made for the year 2001 against each business area.

The calculation of subscriptions for 2001 is influenced by:

à        An anticipated 60% overall increase in traffic volume from 2000

à        Reduction in International per Gb recovery rates.

à        Increase in On Net per Gb recovery rate.

à        Increase in Off Net per Gb recovery rate.

à        Increase in Mirror per Gb recovery rate.

ANU internal recovery rates that will apply for 2001 are shown in the following table:

Table 1

   

Internet Traffic Source

2001

2000

Mirror traffic per gigabyte

$22.50

no charge

On-net traffic (within AARNet), per gigabyte

$22.50

no charge

Off-net traffic (within Australia), per gigabyte

$50

$35

International traffic, per gigabyte

$100

$150

2.       Calculation of 2001 Subscriptions

Projections for 2001 are based on the total incoming traffic for 2000 plus an anticipated allowance for growth in actual traffic volume. As total traffic for 2000 was 7,856 gigabytes, and the average rate of growth over the last four years was 60%, the total traffic volume for the year 2001 has been projected at approximately 12,570 gigabytes.

The ANU Internal recovery rate takes into consideration:

à        Internet traffic rates set by the University's Internet Service Provider (AARNet Pty Ltd).

à        The proportion of mirror, on-net (AARNet), off-net (Australia) and international traffic.

à        The amount of non-recoverable traffic associated with central services, not attributable to a particular area.

à        Subscription to ACT RNO.


Costs

AARNet traffic rates for 2001 and the approximate amount of traffic that each category represents is shown in the table below:

Table 2

     

Internet Traffic Source

2001

2000

Approx % of Traffic

Mirror traffic per gigabyte

$15

$22.50

8%

On-net traffic (within AARNet), per gigabyte

$22.50

$22.50

7%

Off-net traffic (within Australia), per gigabyte

$35

$22.50

15%

International traffic, per gigabyte

$85

$110

70%

The following table shows the projected charge to the University from AARNet for Internet traffic based on the above rates and traffic assumptions:

Table 3

     

Internet traffic source

Projected Traffic (Gb)

AARNet

$ per Gb

Projected Cost

Mirror

1,006

$15

$15,000

On-net traffic (within AARNet)

880

$22.50

$20,000

Off-net traffic (within Australia)

1,885

$35

$66,000

International traffic

8,799

$85

$748,000

       

Total

12,570

 

$849,000

In addition, an amount of approximately $30,000 will be paid to the ACT Regional Network Organisation (RNO) for running costs for 2001. A contingency fund for 2001of $150,000 will also be established.

Contingency

A contingency of $150,000 will be established for 2001 from the following:

Table 4      
Item  

Amount

 

Actual Usage charge reported on WWW for 2000

 

$806,000

 
       

RNO Contribution 2000

$15,000

   

Actual Charge from AARNET for 2000

$686,000

$701,000

 

Balance available

 

$105,000

 

Charge required in 2001 to increase contingency to $150,000

 

$45,000

 

Funds to be held in contingency

 

$150,000


Recovery

The Internet subscription for 2001 will be $924,000 and is based on the following costs:

Table 5

 

Item

Amount

   

2001 Projected Internet traffic costs¾ @ 12,570 Gb

$849,000

2001 ACT RNO running costs

$30,000

2001 Increase to contingency fund

$45,000

2001 Internet subscription total

$924,000

The following table shows the effect of applying the 2001 internal rates to recoverable Internet traffic (92% of total traffic):

Table 6

       

Internet Traffic Source

2001 projected total traffic

(Gb)

Recoverable

traffic

92%

(Gb)

2001

ANU Internal charge per (Gb)

Recovery

Mirror

1006

925

$22.50

$21,000

On-net traffic (within AARNet)

880

809

$22.50

$18,000

Off-net traffic (within Australia)

1885

1735

$50

$87,000

International traffic

8799

8095

$100

$809,000

         

Total

12570

11,564

 

$935,000

The above table shows a recovery on projected recoverable traffic of $935,000 while table 5 shows costs of $924,000. Any resulting surplus or deficit at the end of 2001 will be cleared when next yearês subscription and the reconciliation of 2001 is done in early 2002.

3.       Reconciliation of 2000 Subscriptions

The actual Internet traffic usage charges for 2000 reported on the WWW totalled $805,790, exceeding the subscription charged for 2000 ($612,000) by $193,790. This shortfall is mainly due to the overall traffic usage by areas increasing at a rate higher than that predicted. This deficit will largely be offset by the $126,000 held in contingency for 2000. The actual impact on each individual area will depend on their respective usage.

Reconciliation of 2000 actual usage costs
Table 7  

2000 subscription based on projected internet usage

$612,000

Actual Internet usage as reported on WWW

$806,000

Deficit to be recovered from budget units

($194,000)

Contingency held in 2000 to be returned to budget units

$126,000

Adjusted deficit for 2000 to be recovered with 2001 subscriptions

($68,000)


4.       Summary of subscription for 2001

Subscription for 2001
Table 8  

2000 adjusted deficit to be recovered with 2001 subscriptions

$68,000

2001 subscription total

$924,000

2001 charge to budget units

$992,000

The recovery by business area can be found at:
http://netcomms.anu.edu.au/charging/subs2001.html

Actual internet usage during 2001 can be viewed at:
http://netcomms.anu.edu.au/stats/data/anutotal.2001.html

Note:
Dollar figures in the above tables have been rounded to the nearest thousand for the purpose of this information sheet.

Don Graham
Executive Officer, ITS
13 March 2001