Freedom.org Backgrounder: Agenda item - Friday Morning No. 1

Internet:

The domain name, freedom.org was secured in 1993 by C:Earthwork, Inc. which is a private corporation owned by my family. The cost for registering was $100, plus $50 per year. Costs were recently reduced. Freedom.org is a project of ECO. Contributions for equipment have been recorded as ECO income. The equipment required has been bought by ECO. The Internet connection, and the ISDN phone lines are in ECO's name. This procedure has enabled acquisition without tax liability, and offers a better opportunity for contributions than would a private corporation. C:Earthwork, Inc., has had no involvement with the project except maintaining the registration.

To date, our equipment expenditures total $21,843 out of pocket. Our contributions specifically to the project total less than $5,000. The difference has come from ECO's income stream. (That's why it took so long to get it together). Our fixed costs for the site include: $400 per month for the basic connection to the Internet; $100 per month for the ISDN line; and about $100 per month for increased electricity. (We have four computers running 24/7).

Freedom.org hosts four sites: Sovereignty International; ECO; EPI; and Freedom Week. These sites occupy three of our six IP (Internet Provider) addresses. Our ISDN lines provide for data exchange at the rate of approximately 720kb per minute. (We have seen one occasion where 738kb flowed).

That means that should four people in the world want the ICC document (209.3kb) at the same time, our band-width would be exceeded, and the visitors would experience extremely slow response, or worse. The same principle applies to all documents in any combination to all visitors who happen to be on line at any given time. The number of simultaneous users depends entirely on the file size of the various documents that may be served in response to their requests.

We anticipated that ISDN would be adequate for the first year at least. The response we have seen during the first few months forces us to reconsider. We can double our band-width by installing another ISDN line. The fixed cost would increase from $500 per month to $800 per month, plus about $1,000 for additional necessary equipment.

We are taking a hard look at skipping this step. The next expansion would be the installation of a T1 line. (Band width comparison: ISDN = 128kbps; T1 = 1540kbps). In addition to vastly expanded band-width, it would give us 256 IP addresses. Instead of hosting four sites, we could host as many as 250 sites. What makes this attractive is the income-producing potential. Rob Gordon, for example, pays $2000 per year to his Internet provider. He maintains his site; the fee is simply for Internet access. These fees are determined by site size; number of hits; volume of data transfer, and several other factors. The fixed cost of a T1 line is approximately $3,500 per month ($42,000 per year), plus about $3,000 for transitional equipment. I am looking at a scenario where C:Earthwork could provide Rob his access for, say, $1,200 per year. It would take only 35 such users to cover the fixed costs, leaving more than 200 IP addresses available for rental to other users. This activity could provide a salary for Adam, Meritt, and Karen. This would greatly enhance our capabilities and free me for more productive endeavors.

At the moment, I am maintaining all the sites except EPI. Mike is maintaining his own site. Adam is monitoring the server and maintaining the equipment. This activity is extremely time-consuming, and ECO's site has suffered in order to get Sovereignty's site constructed. Sovereignty International must consider its long-term use of the Internet. We must build into Sovereignty's budget adequate payment for an appropriate share of the fixed costs, and consider the long term management of the site.

Specific questions for the Board's consideration include these:

1. How does SI wish to relate to freedom.org, as I have explained the situation?

2. How does SI wish to maintain its site when I resign, or am kicked-off the board?

3. Is there a better way to maintain the site currently?

4. How does SI wish to use the site in the future?

5. Of a more short-term, and perhaps urgent nature, what share of the accrued, and current costs is appropriate for Sovereignty to pay, and how can Sovereignty pay it?