The introduction of a two-tiered pricing scheme is a key component to the next generation Internet.

Basic Service is comparable to today's Internet service wherein all packets compete equally for network access, with no assurance of successful delivery within a specific time limit. Packets may be delayed for substantial time periods at times of network congestion.

Premium Service effectively reserves a portion of network bandwidth for a specific host-to-host communication. This service is particularly good for video or audio applications where it is critical that each packet arrive on time in order to avoid distracting breaks in the audio or video stream. Similarly, certain commercial applications may opt for the premium service to assure timely data delivery.

While the specific pricing models are still being debated, it is likely that basic service will be priced at a fixed annual rate comparable to today's Internet. Nearly all of the premium proposals anticipate payment based on the specific session and the amount of bandwidth required -- a pricing system comparable to long-distance telephone tariffs.

Impact on college operating costs.