TO:	The University Community
FROM:	Charles E. Phelps, Provost, and Ronald J. Paprocki, Senior Vice President for Financial Affairs and Planning
RE:	1999-2000 Data Network Connection Rates

Data connectivity--for e-mail, use of the Web, and electronic transactions--now is an expected component of the business and academic environment. The University's network "backbone," which connects local area networks (LANs) to each other and to the outside world, has seen a seven-fold increase in traffic from 1992 to 1998. The demand for data connections is illustrated in the increase in the network connections that attach LANs to the backbone. In 1992 there were about 40 ports around the University; this year there are 135.

Creating the system to support this increase in demand has resulted in significant capital expenditures which, with operating costs, result in annual expenses approaching $2 million. At the same time, income streams from data line charges and student long-distance fees have diminished.

As discussed with the President's Cabinet and Administrative Council, in 1999-2000 the costs of the data network will be supported through explicit rates, rather than being subsidized by other University Telecommunications Division (UTD) operations. Estimates of those rates now are being given to the deans and vice presidents. It is a divisional decision regarding how or if these costs will be allocated to departments within that particular division.

Data connection rates will be based on the division's utilization of the network backbone. This utilization model will be monitored closely and reviewed on an annual basis. The University Telecommunications Division will conduct "traffic studies" throughout the year to forecast changes in divisional utilization of backbone resources.

Any questions or concerns regarding these costs should be directed to UTD at x5-8235 or, via e-mail, to UTD director David Lewis at dlewis@utd.rochester.edu.