Planning Alternative Organizational Frameworks for a Large Scale
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r. DOCUMENT RESUME ED 078 663 EM 011 206 AUTHOR Walkmeyer, John TITLE Planning Alternative Organizational.Frameworks For a Large Scale Educational Telecommunications System Served by Fixed/Broadcast Satellites. Memorandum Number 73/3. INSTITUTION Washington Univ., St. Louis, 4o. F.,:ogram on Application of Communication Satellites to Educational Development. SPONS AGENCY National Aeronautics and Space Administration, Washington, D.C. REPORT NO M-73-3 PUB DATE Jun 73 NOTE 120p. EDRS PRICE MF-$0.65 HC-$6.58 DESCRIPTORS Broadcast Television; Cable Television; *Communication Satellites; *Computers; Educational Equipment; Educational Technology; Fixed Service Television; Information Dissemination;-Information Storage; *Networks; *Organization; Programing; State of the Art Reviews; *Telecommunication ABSTRACT Considerations relating to the design of organizational structures for development and control of large scale educational telecommunications systems using satellites are explored. The first part of the document deals with four issues of system-wide concern. The first is user accessibility to the system, including proximity to entry points, ability to pay, permission to use facilities, and control over use. Next, integration and control of the system's components by private or public agencies are considered. Third, the matter of equipment control is covered.- Fourth, the question of what developmental initiatives are needed in order to move from concept to action is dealt with. Four issues relating to specific system components are included in the second part of the report. These are the sources of software programing, software storage, the means of its transmission, and the matter of local and regional distribution.' Also treated are the social cons.quences of educational networking. (Author/PB) PLANNING:ALTERNATIVEOR6ANIZATIONAL FRAMEWORKS FOR VLARGE-SCALEIDUCATIONALTELECOMMUNICATIONS-SYSTEM SERVED BY FIXED/BROADCASTSATELLITES JOHN WALKMEYER SHINGTON UNIVERSITY/ ST. =LOUIS /MISSOURI 63 i 3o FILMED FROM BEST AVAILABLE COPY Isr ..010 I %AD ir Cx) PROGRAM ON APPLICATION OF COMMUNICATIONS SATELLITES c: TO EDUCATIONAL DEVELOPMENT I 1 U./ Center for Development Technology (Communications Group) Washington University Memorandum No. 73/3 June, 1973 PLANN I NG ALTERNAT I VE ORGANIZATIONALZATIONAL FRAMEWORKS FOR A LARGE SCALE EDUCATIONAL TELECOMMUN ICATI ONS SYSTEM -SERVED BY F I XED/BROADCAST SATELLITES JOHN WALKMEYER U.S. DEPARTMENT OF HEALTH. EDUCATION & WELFARE NATIONAL INSTITUTE OF EDUCATION THIS DOCUMENT HAS BEEN REPRO DUCED EXACTLY AS RECEIVED FROM THE PERSONOR ORGANIZATION ORIGIN ATING II POINTS OF VIEW OR OPINIONS STATED DO NOT NECESSARILY REPRE SENT OFFICIAL NATIONAL INSTITUTE OF EDUCATION POSITION OR POLICY This study was supportedi_by the National AeronaUtics and Space Adminittratitin -Under -Grant No-. -NGR-26-008-054-. The views expressed An this memorandum are those of- th-e-_ authorand_ do not necessarilyrepresent -those of the Center for Development Technology, Washington University,- or -the sponsoring-agency. TABLE OF CONTENTS Page SUMMARY ix INTRODUCTION 1 1. Purpose and Scope of This Memorandum 1 2. Pressures on the Education Sector for New Approaches 3 =3. Opportunities With Educational Telecommunications 3 3.1 Rationale 3 3.2- Educational Telecommunications Service Categories 4 3.3Roles of SatelliteS , 4. PreviousOrganizational Design Work PART_A._ TOPICS OF SYSTEM WIDE OR RECURRING SIGNIFICANCE 1. Introduction 2. Access -11 2.1 Introduction 11 2 =.2= Proximity 12 2.3Ability to Pay: Some Alternatives for Financing . 13 2.3.1 The Pricing Mechanism 13 2.3.2 The Problem of Inelasticity 15 2.3.3= The Effect of Misallocating Costs 16 2.3.4 Fee Structure and Accountability 16 2.3.5 Conclusions 17 2.4Consent: Allocating Access by Fiat 18 2.4.1 Apportionment of Access by Time of Day. 19 2.4.2 Apportionment of Access by Priority .... 19 2.4.3Obtaining Consent in Non-Dedicated Systems. 20 2.4.4 Copyright: Obtaining Consent for Use of Software 21 ii TABLE OF CONTENTS (continued) Page 2.4.4.1 Introduction 21 2.4.4.2Public Domain Policy 22 2.4.4.3Educational Exemptions 23 2.4.4.4Copyright Protection Against Unauthorized Input 23 2.4.4.5 Solutions 24 2.5 Control 27 2.5.1 Control Over Time of Use 27 2.5.2Localization of Decision-Making 28 2.6 Access: A Concluding Remark 29 3. Integration 29 3.1 Introduction 29 3.2Prospects for Integration, Ptsitive Aspects. 32 3.3Negative Implications of Component Integration 34 3.4 Integration of Functions 35 General Organizational Alternatives 36 4.1 Introduction 36 4.2Rationaies for Public Control 37 44.3 Where Educational Telecommunications Fits 37 4.3.1 Public Goods. 3. ..... 37 44.3.2 Profit Prospects Insufficient to Attract Private Investment 38 4.3.3 Uncontrollable Abuses 40 4.3.4Government Enterprise As a Source of Revenue 41 4.4Alternative Types of Organizations 42 4.4.1 Government Agency Model 42 4.4.2Government Corporation (TVA Model) 42-- 4.4.3 Public Non-Profit Corporation (CPB Model) . 43 4.4.4 Private Control With Public Participation (COMSAT Mbdel) 44 4.4.5 Private Profit Corporation 45 , TABLE OF CONTENTS (continued) Page Hardware Control 46 6. Development Strategies 49 6.1 Introduction 49 6.2- Public Control 49 6.3Financial Incentives to Private Enterprise 49 1-7 5.3.1 Research and Development 49 6.3.2Below-Cost Services 50 6.3.3Cash Operating Subsidies 50 6.3:4 The REA Approach 51 6.4Service Demonstrations.. ..... ... .. 52 6.5 Turn-Key Operations 53 =6.6 Marketing Assistance. ......... .. - 54 6.7 Conclusion 55 PART B.= EXPLORING-ISSUE-S:=AND:=OPTIONS_AT THE :COMPONENT LEVEL.. 57 1. IntroduttiOn 57 2. 'Program Sources --Software = _57 2.1 Needs and Problems Sr 2.1.1 Research and Development 57 2.1.2Authoring and Production 58 2.1.3 Marketing 58 2.2 The Roles of Indbstry =and Government 59 2.3 Non-Commercial Sources 61 2.4Alternative Organizational Approaches to Software Development 62 2.4.1 Competitive Private Enterprise 62 2.4.2 User-Funded, Non - Profit-Procurement Organization =63 2.4.3User-Funded, Non-Profit Production Organization 64 TABLE OF CONTENTS -----Forif-!nueThir- Page 2.4.4 User-Produced Software Shared Among Total Network Membership 64 2.4.5Combination of Above 65 2.5Existing Models for Software Marketing 65 3:Storage/Origination Points 67 3.1Placement of Facilities and Division of Responsibilities 68 3.2Selection of Materials 75 3.3Control= 77 3.4 A Call for Action:The Carnegie Conmission Report... = 79 4.Teinsmission . 80 4.1Dedicated versus Non-Dedicated Systems 80 4.1,1Uiing Commercial "DOMSATs " 80 4.1:2 A Dedicated Satellite System.... ... ... 81 4.1.3 A Hybrid System 81 4.2 Optimizing the Satellite-Earth Terminal Tradeoff.... 82 4.3 Administrative Options t_ 84 4.3.1Non-Profit Corporation Model 84 4.3.2Government Corporation (TVA Model) 84 4.3.3 Government Agency Model 84 4.3.4 Turnkey Model........ ........... 85 4.3.5Private Corporation, Common Carrier Model.... 85 4.4 Additional Remarks on Administrative Options 85 4.4.1Repetitive Scheduling vs. Demand Access 85 4.4.2 TVA Model- Wholesale Distribution 86 4.4.3 Government Franchising 86 4.5 Non-Integrated Control of Earth Terminals 86 5.Local-Regional Distribution 87 5.1 Introduction 87 v TABLE OF CONTENTS (continued) Page 5.2 Dedicated. and Educator-Owned Cable 88 5.3 Two Latent Technologies for Local/Regional Distribution -- MDS and SCA 89 5.3.1 Multipoint Distribution Service 89 5.3.2 Subsidiary Communications Authorization (SCA) . 89 5.4Transmission-Localized Service Tradeoffs 90 5.5Reaching Rural Areas-- Statement of the Problem . 92 6. A Word About Consequences 101 CONCLUSIONS 103 REFERENCES 105 vi f T LIST OF TABLES NO. Page 1. Hypothetical Illustration of Price Structure Before and After Introduction of Large Scale Telecommunications System and Lieb's "Variable Pricing" System 26 2. Impact of Regional General Purpose Centers on Software Diversity and Distributor Coverage 74 3. List of State Population Densities 95 -._ vii I I LIST OF FIGURES I No. Page I 1. Educational Satellite System Components 10 2. Ingredients of Access 11 3. A Proposed Integrated Satellite System 30 4. Educational Satellite System: Components and I Functions 31 Alternatives for Division of Responsibilities Among Educational Resource I Centers (Storage/Origination Points) 5. General Purpose Educational Resource Centers With 1 Regional Coverage Responsibilities 69 6. Special Purpose Educational Resource Centers With I Nationwide Coverage Responsibility 70 7. National ETV Centers/Regional CAI Centers 71 8. Combination Special Purpose Centers With Nationwide Coverage and Regional Centers 72 9. User-Distributor Access Tradeoff 76 10. Illustration of Satellite Power/Ground Terminal Sensitivity Tradeoff 83 11. Transmission System Capacity/Local Activity Tradeoff 91 12. -Distribution of Educational Radio Stations and Population Densities of States 96 13. Distribution of Educational Television Stations and Population Densities of States 97 14. Interstate and Intrastate Educational Communications Networks and Population Densities of States 98 15. Distribution of ITFS Installations and Population Densities of States 99 16. Projected CATV Service Areas in 1975 and Population Densities of States 100 viii .4 SUMMARY This memorandum explores a host of considerations meriting attention from those who are concerned with designing organizational structures for development and control of a large scale educational telecommunica- tions system using satellites. Part of a broader investigation at Washington University into the potential uses of fixed/broadcast satel- lites in U.S. education, this study lays groundwork for a later effort to spell out a small number of hypothetical organizational blueprints for such a system and for assessment of potential short and long term impacts. The memorandum consists of two main parts. Part A deals with subjects of system-wide concern, while Part B deals with matters related to specific system components. Part A leads off with a discussion of access. A fundamental rationale for developing a telecommunications-based delivery system is the potential for making more educational resources easily accessible to more people.