Steve Cotter, Internet2's Director of Network Services, explains the new Internet2 Network fee structure [pdf].

Participation Fees (annual)
Network Participation Fees for 2007 will be $22,000, as previously announced. Participation Fees for 2008 and beyond are under review and will be made available by December 2006.

Connection Fees (annual)
New connection fees will go into effect when an Abilene agreement comes up for renewal and transition to the new Internet2 Network has already occurred. These fees include the ability to opt-in to the commercial peering service at no additional charge. Commodity Internet access is also an opt-in service and must be purchased in addition to the connection fees. For a period of time, Internet2 will allow connections below 2 x 10 GigE, but those that connect at 2 x 10 GigE will benefit from the lowest offered price for commodity services.

Note: Commodity prices are estimates and will be determined in part by market conditions. Commodity and peering connections will be provided on a separate routing and forwarding instance from the traditional Internet2 IP network.

SEGP Fees (annual):  $30,000 + $2,000 per congressional district

Redundant IP Connections:  Connectors can use the dynamic wave as an immediate reservation dynamic backup circuit to an alternative IP router.  A dedicated backup wave to the second closest router can also be purchased so long as the aggregate usage across the two links remains below the connection fee allowance.  Prices include the cost of the router interface.  Other redundancy options will be considered upon request.

• Dynamic wave:  $25,000/year.  Pre-installed cross-connect would come out of grooming box and go directly into the router (or into Infinera to be backhauled to alternate router) to be immediately available in the event primary IP connection goes down.
• Dedicated 1 GigE:  $75,000/year
• Dedicated 10 GigE:  $175,000/year

Dynamic Waves:  Only available to those connectors at 2 x 1GigE and 2 x 10GigE.  These waves may be used reserved for hours, days or weeks.

• Immediate reservation, short-term (<1 month) point-2-point waves are free, subject to blocking.
• Advanced reservation, short-term point-2-point waves will have guaranteed availability for the period of the reservation.  These waves may incur additional fees, to be determined when we can evaluate actual demand and costs.

Dedicated Waves:  Available on the Internet2 Network footprint to Connectors.  Members that aren’t direct connectors need to go through a regional with a signed connection agreement with Internet2.  Available at any core optical node or add/drop location as depicted on the network map.  Includes 99.9% availability SLA. 

Wave Fees: Based on fiber route miles

FiberCo Fees (through March 2008):

• Dark fiber:  $850/strand mile for 20 year IRU
• $40,000 transaction fee applied
• Colo:  All racks have $3000 NRC and 5 year commitment if in Internet2 space, otherwise per FiberCo contract ($2,500 NRC). 
• Gateway:  $800/month/rack includes 30 amps DC power
• ILA:  $600/month/rack includes 10 amps DC power
• Additional power:  $150/10 amps/month
• O&M:  $200/route mile/year for up to 6 fibers
• Metro fiber:  Individual case basis, dependant on market
• Transaction fee:  10% up to $40,000 but not less than $5,000
• Professional Services:  Individual case basis
• Remote Hands:  Discounted prices according to purchased plan.

WaveCo:  In addition to dedicated waves on the new Internet2 Network, members also will have access to dedicated circuits beyond the 13,000-mile Network footprint.  Internet2 WaveCo, a new service in collaboration with the network carrier, Level 3 Communications, will provision circuits – optical carrier and digital signal – for regional networks and other Internet2 participants needing to cost-effectively extend their connectivity anywhere on the Level 3 optical network. WaveCo also provides the advantage of national-scale aggregated rates, which are especially beneficial for regional networks that wish to extend their reach to only a few sites with varying demands for circuit capacity or duration.

Fees determined on individual case basis.