AARNet Copyright 2011 Internet Traffic Management and Accounting

AARNet Copyright 2011 AARNet Charges in …? 2 Commercial in Confidence

AARNet Copyright 2011 AARNet Charges in 1994 Since its inception four years ago AARNet

AARNet Copyright 2011 AARNet Charges in …? 4 Commercial in Confidence

AARNet Copyright 2011 AARNet Charges in 1991 The Australian Universities each pay a fixed

AARNet Copyright 2011 AARNet Charges in … ? On-Net Subscription Fee The On-Net Subscription

AARNet Copyright 2011 AARNet Charges in 2005/2006 Commodity or Off-Net charges The Relevant Institution

AARNet Copyright 2011 AARNet Charges from 2005 to 2011 2005 – AARNet 3; On

AARNet Copyright 2011 Revenue from 2005 to 2011 Total Revenue 2005 to 2011 (original

AARNet Copyright 2011 Average Charge from 2005 to 2011 Average Charge 2005 to 2011

AARNet Copyright 2011 Charges and Revenue 2005 – 2011 (shareholders) 11 Commercial in Confidence

AARNet Copyright 2011 Traffic, Charge and Revenue – 2005 to 2011 Total Traffic, Average

AARNet Copyright 2011 Metered and Unmetered Traffic – 2005 and 2010 Metered and Unmetered

AARNet Copyright 2011 Metered and Unmetered Traffic – 2010 and 2011 Metered and Unmetered

AARNet Copyright 2011 Revenue from Shareholders – 2005 and 2010 Revenue Sources, 2005 68%

AARNet Copyright 2011 2010 Traffic Statistics (all customers) On Net Off Net Domestic 16

AARNet Copyright 2011 Total Traffic – 2005 to 2010 1 500 150% 1 250

AARNet Copyright 2011 Total Traffic – 2008 to 2010 1 500 150% 1 250

AARNet Copyright 2011 Unmetered and Metered Traffic – 2005 to 2010 1 500 150%

AARNet Copyright 2011 Unmetered and Metered Traffic – 2008 and 2010 1 500 150%

AARNet Copyright 2011 On Net Traffic – 2005 to 2010 75% 500 50% 250

AARNet Copyright 2011 On Net Traffic – 2008 to 2010 75% 500 50% 250

AARNet Copyright 2011 Off Peak Traffic – 2008 to 2010 200 0, 5 100

% Unmetered Traffic 24 80% 60% 40% 20% 0% 0% Macquarie UWS La Trobe

% Unmetered Traffic 25 80% 60% 40% 20% 0% 0% Macquarie UWS La Trobe

YTD Usage (% of Off Net Subscription) 26 50% 0% 0% CDU Flinders UTas

YTD Usage (% of Off Net Subscription) 27 0% CDU Flinders UTas RMIT Murdoch

Usage (% of Annual Allowance) 28 0% UQ SCU UTas Macquarie Flinders Canberra UWS

Usage (% of Annual Allowance) 29 0% UQ SCU UTas Macquarie Flinders Canberra UWS

% Off Peak Traffic 30 80% 60% 40% 20% 0% 0% ACU Victoria Flinders

% Off Peak Traffic 31 80% 60% 40% 20% 0% 0% ACU Victoria Flinders

Average Cost - $ per GB 32 $8, 00 $7, 00 $6, 00 $5,

Average Cost - $ per GB 33 $8, 00 $7, 00 $6, 00 $5,

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AARNet Copyright 2011 AARNet Charges in 1994 Since its inception four years ago AARNet has been a “user pays” network with the costs being shared among universities, CSIRO and Affiliate members. Each university has contributed a fixed annual fee in proportion to its Government operating grant, CSIRO has contributed an agreed proportion of the total network operating costs, and Affiliate Members have been charged according to the bandwidth of their connection to the network. These contributions towards the cost of expanding and running AARNet were fixed on a year by year basis regardless of the amount of traffic each organisation generated on the network. In addition funds were provided by the Australian Research Council for improving research infrastructure. This method of recouping costs was appropriate for the early years of AARNet’s operations but in order to meet the growing demand from users for network capacity an alternative charging structure for using AARNet is now required. The Australian Vice 3 Chancellors’ Committee is examining a range of Commercial in Confidence

AARNet Copyright 2011 AARNet Charges in 1991 The Australian Universities each pay a fixed annual subscription via their yearly subscription to the Australian Vice-Chancellor’s Committee itself. The size of the yearly contribution is based on the size of each institution’s annual recurrent budget (as an 5 estimate of the institution’s size) and ranges from $20, 000 to $100, 000 per year. These annual subscription fees cover the full cost of leased communications lines from a (single) connection point within each institution to the relevant State regional network hub site, as well as provision of the necessary network router equipment required to connect each institutions campus local area network to AARNet. Te CSIRO contribution is calculated differently to reflect its organisation (many Divisions scattered geographically throughout Australia). The CSIRO pays the Australian Vice. Chancellors’ Committee a fixed sum each year and undertakes to cover the full costs to provide leased lines and router equipment to connect its various internal networks to the State regional Commercial in Confidence

AARNet Copyright 2011 AARNet Charges in … ? On-Net Subscription Fee The On-Net Subscription Fee for the first year of the Term is $. . . This is derived from the following formula: 0. 0018(TRI) + NAC(EFTSU + 3(FTEStaff)) where: TRI = Relevant Institution Total Research Incomes EFTSU = Higher Education Equivalent Full Time Student Units FTEStaff = Full Time Equivalent Staff NAC = Number of AARNet connected locations The above formula takes into account the latest published figures available as at the last day in June in each preceding year. 6 Commercial in Confidence

AARNet Copyright 2011 AARNet Charges in 2005/2006 Commodity or Off-Net charges The Relevant Institution agrees that it will pay a commodity subscription charge for all Off-Net Traffic, (as that term is defined in Schedule 1 ) the amount of which for 2005 will be the sum of: – the commodity subscription for 2005, which is $. . . [Note: this is the actual total commodity charge incurred between 1 June 2003 and 31 May 2004 (charged at $22. 50/GB) – a charge of $7/Gigabyte for traffic received in 2005 that is in excess of the volume received between 1 June 2003 and 31 May 2004. For 2006 and subsequent years, the commodity subscription charge will be set to the previous years’ total commodity charge. Access Charge 7 The amount of the access charge will be $1, 000 per month (or $12, 000 per annum) for each dedicated Commercial in Confidence

AARNet Copyright 2011 AARNet Charges from 2005 to 2011 2005 – AARNet 3; On Net and Off Net Subscriptions; $22. 50 and $7 per GB 2006 – $7 per GB 2007 – $7 per GB 2008 – $5 per GB; On Net and Off Net charges “normalised” (Off Net Base) 2009 – $4 per GB; Domestic Peering and Off Peak introduced; Excess Traffic charges partially waived 2010 – $4 and $2 per GB; Excess Traffic charges partially waived 2011 – $2 per GB; Off Peak extended 8 Commercial in Confidence

AARNet Copyright 2011 Revenue from 2005 to 2011 Total Revenue 2005 to 2011 (original and current formulas) $120 M $106, 9 M $81, 6 M $80 M $65, 7 M $60 M $49, 7 M $40 M $32, 8 M $30, 1 M Revenue (current formula) 9 Commercial in Confidence Revenue (original formula) 2011 2010 2009 2008 2007 2005 $0 M $36, 4 M $36, 0 M $35, 1 M $31, 4 M $25, 2 M $24, 8 M $21, 7 M $21, 3 M $20 M 2006 Total Revenue ($M) $100 M

AARNet Copyright 2011 Average Charge from 2005 to 2011 Average Charge 2005 to 2011 (original and current formulas) $20 $15 $14, 06 $13, 86 $10, 95 $10, 04 $10, 62 $10 $9, 74 $7, 05 $6, 71 $5, 94 $5, 20 $5 $3, 11 $2, 02 Charge (current formula) 10 Commercial in Confidence Charge (original formula) 2011 2010 2009 2008 2007 2006 2005 $0 Average Charge ($/GB) $17, 92 $17, 61

AARNet Copyright 2011 Traffic, Charge and Revenue – 2005 to 2011 Total Traffic, Average Charge and Total Revenue (Shareholders Only) 20 000 $20 $17, 92 $15 Total Traffic (TB) $13, 86 $10, 04 10 000 $10 $6, 71 $5, 20 5 000 $5 $3, 11 $2, 02 Unmetered 12 Commercial in Confidence Metered Charge 2011 2010 2009 2008 2007 2006 $0 2005 0 Revenue Average Charge ($/GB) 15 000

AARNet Copyright 2011 Metered and Unmetered Traffic – 2005 and 2010 Metered and Unmetered Traffic 2005 86% Metered Unmetered 14% Metered and Unmetered Traffic 2010 29% 10% Metered Domestic On Net International On Net 22% Off Peak 27% 1% 13 Commercial in Confidence Domestic Peer 11% Port Based

AARNet Copyright 2011 Metered and Unmetered Traffic – 2010 and 2011 Metered and Unmetered Traffic 2010 29% Metered and Unmetered Traffic 2011 10% Metered 10% Domestic On Net 22% International On Net 22% 27% 1% Peak and Off Peak Traffic 2010 Domestic Peer Off Peak 21% 1% 17% Peak and Off Peak Traffic 2011 71% 55% 29% 14 Commercial in Confidence Peak International On Net Domestic Peer Port Based 11% Metered 29% 45% Peak Port Based

AARNet Copyright 2011 Revenue from Shareholders – 2005 and 2010 Revenue Sources, 2005 68% On Net Subscription Off Net Subscription Excess Traffic 18% 3% 11% Access Fee Revenue Sources, 2010 58% 37% 2% 3% 15 Commercial in Confidence On Net Subscription Off Net Subscription Excess Traffic

AARNet Copyright 2011 2010 Traffic Statistics (all customers) On Net Off Net Domestic 16 International Year Domestic International Peer Peak Off Peak 2008 904 384 262 545 122 2, 059 614 % 48% 50% N/A -1% 7% 31% 33% 2009 1, 438 539 1, 554 625 107 2, 137 673 % 59% 40% 492% 15% -13% 4% 10% 2010 3, 599 1, 190 2, 738 306 86 3, 068 1, 281 % 150% 121% 76% -51% -19% 44% 90% Commercial in Confidence Peak Off Peak Unmetered Total 47% 4, 911 38% 59% 7, 301 49% 71% 12, 460 71%

AARNet Copyright 2011 Total Traffic – 2005 to 2010 1 500 150% 1 250 125% 1 000 100% Monthly Growth (%) Total Traffic (TB) Total Traffic and Growth, 2005 to 2010 75% 500 50% 250 25% 2005 2006 On Net (excluding peering) 17 Commercial in Confidence 2007 Domestic Peering 2008 Total Off Net 2009 Growth (%) 2010 Nov Sep Jul May Mar Jan Nov Sep Jul May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 Total Traffic – 2008 to 2010 1 500 150% 1 250 125% 1 000 100% Monthly Growth (%) Total Traffic (TB) Total Traffic and Growth, 2008 to 2010 75% 500 50% 250 25% 2008 On Net (excluding peering) 18 Commercial in Confidence 2009 Domestic Peering 2010 Total Off Net Growth (%) Nov Sep Jul May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 Unmetered and Metered Traffic – 2005 to 2010 1 500 150% 1 250 125% 1 000 100% Percentage Un-metered (%) Total Traffic (TB) Umetered and Metered Traffic, 2005 to 2010 75% 500 50% 250 25% 2005 Commercial in Confidence 2007 Metered 2008 Percentage Unmetered 2009 2010 Nov Sep Jul May Mar Jan Nov Sep Jul 2006 Unmetered 19 May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 Unmetered and Metered Traffic – 2008 and 2010 1 500 150% 1 250 125% 1 000 100% Percentage Un-metered (%) Total Traffic (TB) Umetered and Metered Traffic, 2008 to 2010 75% 500 50% 250 25% 2008 Unmetered 20 Commercial in Confidence 2009 Metered 2010 Percentage Unmetered Nov Sep Jul May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 On Net Traffic – 2005 to 2010 75% 500 50% 250 25% Percentage On Net (%) Total Traffic (TB) On Net (R&E) Traffic, 2005 to 2010 2005 2006 On Net (excluding peering) 21 Commercial in Confidence 2007 2008 On Net (excluding peering) 2009 2010 Nov Sep Jul May Mar Jan Nov Sep Jul May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 On Net Traffic – 2008 to 2010 75% 500 50% 250 25% Percentage On Net (%) Total Traffic (TB) On Net (R&E) Traffic, 2008 to 2010 2008 On Net (excluding peering) 22 Commercial in Confidence 2009 2010 Percentage On Net Nov Sep Jul May Mar Jan Nov Sep Jul May Mar 0% Jan 0

AARNet Copyright 2011 Off Peak Traffic – 2008 to 2010 200 0, 5 100 0, 25 Percentage Off Peak (%) Total Traffic (TB) Off Peak Traffic, 2008 to 2010 2008 Commercial in Confidence Percentage Off Peak 2010 Nov Sep Jul May Mar Jan 2009 Off Peak 23 Nov Sep Jul May Mar 0 Jan 0

% Unmetered Traffic 24 80% 60% 40% 20% 0% 0% Macquarie UWS La Trobe CQU Newcastle UTS Canberra SCU Sydney RMIT USC UNSW Victoria Deakin ACU Flinders QUT Uni. SA UTas USQ Curtin CSU UWA Wollongong Swinburne ECU ADFA Murdoch Monash Ballarat Griffith Adelaide JCU Melbourne UNE UQ ANU CDU CSIRO Average AARNet Copyright 2011 2010 Unmetered Traffic - 2010 100% Shareholder Customer Commercial in Confidence

% Unmetered Traffic 25 80% 60% 40% 20% 0% 0% Macquarie UWS La Trobe CQU Newcastle UTS Canberra SCU Sydney RMIT USC UNSW Victoria Deakin ACU Flinders QUT Uni. SA UTas USQ Curtin CSU UWA Wollongong Swinburne ECU ADFA Murdoch Monash Ballarat Griffith Adelaide JCU Melbourne UNE UQ ANU CDU CSIRO Average AARNet Copyright 2011 Unmetered Traffic - 2011 (estimated) 100% Shareholder Customer Commercial in Confidence

YTD Usage (% of Off Net Subscription) 26 50% 0% 0% CDU Flinders UTas RMIT Murdoch Ballarat Victoria UNE Curtin Wollongong CSIRO ECU USC Swinburne Uni. SA USQ Canberra Adelaide Monash Griffith UQ SCU Melbourne ACU Newcastle CQU JCU UNSW Macquarie CSU Deakin La Trobe UWS Sydney ADFA UTS UWA ANU QUT Average AARNet Copyright 2011 2010 Off Net Traffic Off Net Usage - 2010 200% 150% 100% Shareholder Commercial in Confidence

YTD Usage (% of Off Net Subscription) 27 0% CDU Flinders UTas RMIT Murdoch Ballarat Victoria UNE Curtin Wollongong CSIRO ECU USC Swinburne Uni. SA USQ Canberra Adelaide Monash Griffith JCU UQ SCU Melbourne ACU Newcastle CQU UNSW Macquarie CSU Deakin La Trobe UWS Sydney ADFA UTS UWA ANU QUT Average AARNet Copyright 2011 Off Net Traffic Off Net Usage - 2011 (estimated) 100% 80% 75% 60% 40% 50% 25% Shareholder Commercial in Confidence 0%

Usage (% of Annual Allowance) 28 0% UQ SCU UTas Macquarie Flinders Canberra UWS ACU CSIRO Newcastle CQU Melbourne USC La Trobe Victoria Monash Curtin Murdoch USQ Ballarat Wollongong Sydney UNSW UNE RMIT Uni. SA CDU Grffith UTS JCU Deakin QUT Adelaide ECU ADFA CSU UWA Swinburne ANU Average AARNet Copyright 2011 2010 Domestic Peering Traffic Domestic Peering Usage - 2010 500% 400% 300% 200% 100% Shareholder Commercial in Confidence 0%

Usage (% of Annual Allowance) 29 0% UQ SCU UTas Macquarie Flinders Canberra UWS ACU CSIRO Newcastle CQU Melbourne USC La Trobe Victoria Monash Curtin Murdoch USQ Ballarat Wollongong Sydney UNSW UNE RMIT Uni. SA CDU Grffith UTS JCU Deakin QUT Adelaide ECU ADFA CSU UWA Swinburne ANU Average AARNet Copyright 2011 Domestic Peering Traffic Domestic Peering Usage - 2011 (estimated) 500% 400% 300% 200% 100% Shareholder Commercial in Confidence 0%

% Off Peak Traffic 30 80% 60% 40% 20% 0% 0% ACU Victoria Flinders Macquarie Murdoch RMIT Griffith USC Wollongong SCU UWA Curtin QUT ECU Ballarat Deakin La Trobe Swinburne CSIRO UTS UNSW Sydney Melbourne CQU USQ UQ UWS Uni. SA UTas CDU ADFA Monash Canberra Newcastle Adelaide CSU ANU JCU UNE Average AARNet Copyright 2011 2010 Off Peak Traffic - 2010 Shareholder Customer Commercial in Confidence

% Off Peak Traffic 31 80% 60% 40% 20% 0% 0% ACU Victoria Flinders Macquarie Murdoch RMIT Griffith USC Wollongong SCU UWA Curtin QUT ECU Ballarat Deakin La Trobe Swinburne CSIRO UTS UNSW Sydney Melbourne CQU USQ UQ UWS Uni. SA UTas CDU ADFA Monash Canberra Newcastle Adelaide CSU ANU JCU UNE Average AARNet Copyright 2011 Off Peak Traffic - 2011 (estimated) Shareholder Customer Commercial in Confidence

Average Cost - $ per GB 32 $8, 00 $7, 00 $6, 00 $5, 00 $4, 00 $3, 00 $2, 00 $1, 00 $0, 00 ANU CSIRO QUT JCU CDU UQ Melbourne UNE ADFA CSU Swinburne UTS UWA Sydney Deakin UNSW Monash Newcastle SCU Griffith CQU Adelaide La Trobe ACU Uni. SA USQ Macquarie Canberra ECU USC UTas RMIT Victoria Ballarat Murdoch Curtin Wollongong Flinders AARNet Copyright 2011 2010 Average Cost of Traffic Average Cost 2010 - $ per GB Shareholder Commercial in Confidence $8, 00 $7, 00 $6, 00 $5, 00 $4, 00 $3, 00 $2, 00 $1, 00 $0, 00

Average Cost - $ per GB 33 $8, 00 $7, 00 $6, 00 $5, 00 $4, 00 $3, 00 $2, 00 $1, 00 $0, 00 ANU CSIRO QUT JCU CDU ADFA UQ UNE Melbourne CSU Swinburne UTS UWA UWS SCU Deakin UNSW Monash Sydney Griffith Newcastle CQU Adelaide ACU USQ La Trobe ECU Uni. SA Canberra USC Macquarie Victoria Ballarat UTas RMIT Murdoch Curtin Wollongong Flinders AARNet Copyright 2011 Average Cost of Traffic Average Cost 2011 (estimated) - $ per GB Shareholder Commercial in Confidence $8, 00 $7, 00 $6, 00 $5, 00 $4, 00 $3, 00 $2, 00 $1, 00 $0, 00