Late last year [, which would be 1995 - as this article is 1996], Bechtel quietly purchased Phoenix-based [Internet Media Network Incorporated], a dormant Internet access provider. The company, which it renamed Genuity, was one of 22 so-called "Tier 1" companies that make up the Internet's backbone.

Others in the same exclusive club include AT&T, MCI, UUNet, AOL and CompuServe. [...]

Late last year [, which would be 1995 - as this article is 1996], Bechtel quietly purchased Phoenix-based [Internet Media Network Incorporated], a dormant Internet access provider. The company, which it renamed Genuity, was one of 22 so-called "Tier 1" companies that make up the Internet's backbone.

Others in the same exclusive club include AT&T, MCI, UUNet, AOL and CompuServe.

Unlike many other providers, however, Genuity doesn't plan to serve individuals with dial-up connections.

Instead, it aims to "supply an industrial-strength information infrastructure so that businesses and other institutions can tap the economic power and potential of the Internet," said John Carter, president of Bechtel Enterprises.

With more than 30 clients, Genuity has grown from scratch to more than 100 employees in 10 months. Nearly all were recruited outside Bechtel.

Genuity, along with several local multimedia companies, will play a behind-the-scenes role at an online chat session this Monday with San Francisco's ubiquitous Mayor Willie Brown.

The company will provide the computer and network services to let thousands of Internet users chat with the mayor from 5 p.m. to 6 p.m. The discussion will embrace such issues as the future of technology industries in San Francisco and how to use the Internet to make San Francisco a better place to live and work. The Web site for the discussion is www.damayor.org.

Genuity is also building an "intranet," or internal corporate computer network, for CNET, an Internet news service.

It will link CNET's offices in San Francisco, Phoenix, Watchung, N.J., and other planned locations.

"There's no limit to how big this thing can get," said Pete Lega, CNET's vice president of technical architecture. "I can get a new office anywhere in the United States to join our network within two or three weeks, and we don't have to worry about it. It's reliable, private and secure."

At its Phoenix center, Genuity manages some of CNET's Internet servers -- computers that store and transmit information on the network -- to lighten the load on CNET's main servers in San Francisco.

Genuity leases two giant data lines from MCI and Sprint. From these lines, it provides Internet service mainly to San Francisco, Los Angeles, Phoenix, Washington, D.C., New York and Chicago. It will operate, maintain and back up computers and networks providing Web service, e-mail and other Internet services, in effect providing one-stop-shopping for network operation.

By carefully managing who gets on its network, Genuity plans to avoid overloading its capacity and jeopardizing its reliability. Technical support staff in Phoenix constantly monitor the network to prevent failures. They even watch 24-hour news and weather channels to spot problems that could crop up elsewhere on the Internet, and route data traffic in safe directions.

In another high-tech venture, Bechtel announced last month its plan to form an international joint venture with CellNet Data Systems, Inc. of San Carlos. Bechtel will handle overseas marketing of CellNet's wireless meter-reading systems, used by electric, gas and water utilities.

Bechtel is no stranger to high technology, despite its reputation for moving dirt. It works with state-of-the-art computer-aided design systems and has the largest research and development arm in the engineering and construction business, company officials say.

Bechtel also excels in complex project management, from the new Hong Kong airport to the English Channel tunnel. It has helped major telecommunications companies such as Sprint and MCI set up national land-line and wireless communications networks.

Its new technology ventures are thus a natural progression rather than a radical change, said Robert Dove, vice president of corporate investments for Bechtel Enterprises.

"We see the Internet as one more step in the management of complex projects," he said. "To have a window on this technology is very important as we move into the next century."

Dove indicated that Genuity, like many Internet companies, isn't making money yet. "But we are very pleased with the way the investment is going. The potential is tremendous."

When the National Science Foundation stopped funding the Internet backbone in the spring of 1995 it turned over operation of four U.S. Network Access Points to private companies -- in fact, to the "baby Bell" regional phone companies created at the breakup of the Bell system. Most of the world's Internet traffic passes through these (and a few other) NAPs. The phone companies charge local and regional ISPs thousands of dollars a month for access to the Internet through these NAPs. Now a player from outside the telphone fraternity is breaking into this cozy business -- and is charging no connection fees to ISPs. Genuity [20] is an ISP for large-scale customers and a subsidiary of Bechtel, the international construction and engineering company. The ISP has opened a new NAP [21] in Phoenix, which it intends to run on a not-for-profit basis in order to build its network services business. For a quick overview of the existing U.S. NAPs see the Genuity topology map [22].

At Internet World in New York Genuity also announced the Hopscotch service [23], which it calls an "industrial-strength solution to Net traffic." It involves real-time tracking of Net congestion and optimal routing of the ISP's customers' data.

Description

This application claims priority from U.S. Provisional Patent Application Ser. No. 60/019,089, filed May 14, 1996, naming as inventors Thomas Obenhuber and Rodney Joffe, and assigned to the assignee of the instant application. U.S. Provisional Patent Application Ser. No. 60/019,089 is incorporated by reference herein in its entirety for all purposes.

BACKGROUND OF THE INVENTION

The present invention relates to computer networking systems and, more particularly, to systems and methods of providing Internet access to multiple users at a single location.

The Internet is a collection of thousands of computer networks around the globe. Internet usage has grown exponentially since 1993, mainly due to the world wide web (Web) and its electronic mail (e-mail) and web page capabilities. This interconnection of computers is possible because the Internet has adopted a communication standard (Transmission Control Protocol/Internet Protocol or TCP/IP) which allows computers with different operating systems to communicate with each other over a network of networks (an "internetwork").

By one estimation, over 8 million computers currently attach to the Internet. An estimated 40 million users worldwide access these computers ("hosts").

Corporations and private users increasingly demand easy, cost-effective, and high-speed (e.g., greater than 1 megabits per second or Mbps) access to public interoperable networks such as the Internet. Around the world, the demand for a technical infrastructure for building private networks on top of public networks also is increasing.

As the number of users on the Internet increases, so too do the users grow more sophisticated. Users are demanding greater bandwidth to support this sophistication.

In conventional systems a user might use several different suppliers and components to achieve connectivity and security. The user then has to change equipment and software protocols during his migration from a lower bandwidth (e.g., 56 kilobits per second or kbps) to a higher bandwidth (e.g., 1 Mbps or higher).

Accordingly, there is a need for a substantially simplified infrastructure to access public networks with a reduced number of components, a reduced number of software protocols, enhanced management capabilities for network components, and secure access to the public network.

SUMMARY OF THE INVENTION

The present invention provides systems and methods for providing multiple users with access to a public network like the Internet. A single high-bandwidth connection (e.g., fast Ethernet) allows the multiple users to communicate with the public network. Each user is allocated a specific bandwidth, and the user is able to freely communicate with the public network up to the allocated bandwidth. Additionally, the invention may be remotely configured to change bandwidth allocations. [...]

Genuity Inc, a San Francisco, California-based subsidiary of engineering and construction giant Bechtel Corp, has acquired NAP.net LLC, a Milwaukee, Wisconsin-based internet service provider covering the Chicago and Milwaukee metropolitan area. Genuity, once known as the Internet Media Network, was formed in 1994 and offers internet connection, data centers and integration serivces. It currently uses […]

Genuity Inc, a San Francisco, California-based subsidiary of engineering and construction giant Bechtel Corp, has acquired NAP.net LLC, a Milwaukee, Wisconsin-based internet service provider covering the Chicago and Milwaukee metropolitan area. Genuity, once known as the Internet Media Network, was formed in 1994 and offers internet connection, data centers and integration serivces. It currently uses Sprint and MCI Internet backbones, while NAP uses WorldCom Inc, giving the combined company a third level of redundancy. No terms were given.

"[Thomas Johannes Obenhuber (born 1955)], one of our founders, has served [at Telocity, Inc.] as our Senior Vice President, Corporate Development since February 2000. From August 1997 to February 2000, Mr. Obenhuber served [at Telocity, Inc.]as Senior Vice President, Business and Product Planning. From January 1995 through July 1997, Mr. Obenhuber served as Vice President, Operations and Engineering at [Genuity Incorporated (2000)], a national backbone Internet service provider that he co-started. From July 1990 through January 1995, Mr. Obenhuber worked at Sun Microsystems where he most recently served as Director, System Architecture."

RE: GTE to acquire Genuity

From: Rodney Joffe

Date: Fri Nov 14 02:15:34 1997

Gordon,

I have to admit that you're right. You really do have all the answers, and you really do know it all.

I guess the fact that there are only two shareholders in Genuity, me and Bechtel, both of whom know exactly what Jon could and couldn't do, and who accepted his conditions when he joined the board, is unimportant. And the fact that Jon knew this, and understood that his fiduciary responsibility in this area was subject *only* to the shareholders, both of whom assured him in terms that he was prepared to accept that they would *not* expect him to or ask him to _abuse_ his position of trust outside of Genuity to assist Genuity unfairly, is irrelevant.

Gordon, I have never been able to quite fathom out why you chose this industry to attempt to make a living, and not the same industry as the National Enquirer. I think you've missed your calling. I only hope your clients realise the true value of your reporting.

So that others are privy to the same information that I gave you, let me be specific ( and remember, I don't owe ANYONE an explanation, but I want to undo the damage that your buffoonery has caused);

Bechtel never really had to make a choice about whether Jon joined the board or an advisory board. I nominated him to the board as one of *my*representatives. They didn't know Jon from a hitchiker before this. I wanted someone clueful to help me guide Genuity along a *good* path, and away from the dark side (obviously I passed on asking you). I think I can proudly say that Genuity has been an exemplary internet citizen (I, of course, may not have been).

So when you attempt to to wind people up with your paranoia, you do someone who has done a lot of good for the Internet over *many* years a grave injustice. Fortunately I care more about what honest, good people like Jerry Scharf says, than I do about what you say. If I didn't, I'd probably spend some real energy telling you what I really think.

Does anyone know if Paul's RBL works on a single netaxs address?

Rodney Joffe / Chief Technology Officer / Genuity Inc., a Bechtel company

RESPONDING TO :

> -----Original Message-----

> From: Gordon Cook [SMTP:cook@netaxs.com]

> Sent: Thursday, November 13, 1997 11:38 PM

> To: Jerry Scharf

> Cc: nanog@merit.edu

> Subject: Re: GTE to acquire Genuity

May I quote what you over looked: Now I am confident that he has not used his position to give special benefit to genuity.

and later in the same post: Rodney Joffe explained to me in very glowing terms this summer why jon was on the 'board" his explanation sounded fine.

Further explanation - Rodney Joffe told me precisely the same story which i published verbatim.....and more besides..... jon came out pure as the driven snow

I never suggested genuity was harmed. I do state that one of the senior members of the community who knows the laws of the fiduciary legal responsibility of members of boards of directors far better than I pointed out that he believed it possible that a genuity stock holder who was aware of jons proper from the internet point of view, could have taken legal action against jon for NOT making a decision that benefitted genuity and using his powers to act for the fiduciary benefit of the company of which he was a director and for which he had such a legal responsibility.

now I am a r ussian history Phd....read trained as an academic....as is jon.....and most academics aren't terribly aware of these nuances.....so I can understand jon's accepting the directorship.

guess my bitch is why would the presumably legally savvy business staff of genuity/bechtel have put jon however unwittingly into such a position?.

I have been told be those who are also my seniors, that Jon is and "icon" and when one critcizes him one can expect all hell to break loose....looks like my seniors were right.....but it also looks like I owe him no apology.

and before you continue your flame I hope you will look more carefully at what I am saying.

read my original post more carefully this time.

Last time i looked Jon postel was still on genuity's board. It is my understanding that this gives him a LEGAL responsibility to act in the best financial interests of genuity. Seems to me this creates a conflict of interest given what with his powers as IANA he could do to benefit genuity with IP allocations etc. Now I am confident that he has not used his position to give special benefit to genuity. but I am also told that he could be regarded as culpable for not having helped them out when it could be argued he had the power to do so. This is a distinction that I was slow to grasp and one that jon with a research rather than a business background might also be slow to grasp.

Rodney Joffe explained to me in very glowing terms this summer why jon was on the 'board" his explanation sounded fine. Point is Jon could have had the same impact as a special advisor to the board. one wonders why genuity bechtel attornies that could be expected to be aware of these issues went with the board choice anyway.

does jons board position disappear when genuity is fully acquired? i would hope so.

From: Gordon Cook

Date: Fri Nov 14 11:09:44 1997

Rather than speak ONLY to the facts, Rodney can't resist some very nice name calling and personal attacks because my criticism has obviously offended him. And regardless of what an outsider to the internet might think his motives were of course pure. Let the record speak for itself and let the discussion be taken off line and NANOG be returned to operational matters.

Here, in full, is what I published in my sept 97 issue.

On July 13 Rodney wrote privately to us but for publication: I've been mulling over your request, and I'm not sure how best to answer it. One of the misnomers about Genuity is that we're a start up. You'll actually find that we were one of the 22 direct connects to the CIX router in Santa Clara already in May of 1994, so I'd hardly call Genuity a start up. Although we were certainly the smallest, or one of the smallest (Jamie Saker out of Wisconsin at Synergy was probably a similar size), we were very much in business before the Internet truly became mainstream.

Anyway, our early allocations were a couple of /24s, and then a 19/. We had to plead with Kim Hubbard for another 19/, but were successful in getting it only when we promised to be frugal in sub-allocations (she didn't ask for empirical evidence). Then Genuity came in to being (December 1995 when I sold 75% of the company to Bechtel).

At that stage, or soon after, things tightened up. We really didn't have our act together as far as swipping address space that we had allocated to customers, and we began to run out of space. At the NANOG held in DC in 1996 all of our pleading with Kim fell on deaf ears.... Justifiably on her part (although at the time I felt a 2 x 4 was the best method of improving her hearing). So I approached everyone I could for help, including Paul Vixie and Jon Postel. Jon was very helpful, cuffing me around the ears and telling me to go away and do what the NIC wanted everyone to do, and to set an example. So, all of our Network Engineering staff got together, and over the course of a week built all the audit tools needed, and SWIPd all the addresses we had allocated, developed an ongoing plan and architecture for allocating address space, then went back to Kim for more space.

Kim looked at the SWIP data, tested the integrity, and then agreed to allocate us more address space in segments, but only if we agreed to return the address space we already had if we wanted to get contiguous space allocated (I am a big believer now in CIDR). We have stuck to this religiously, and have only been turned down twice since then when we have asked for more address space (we had to tighten up more of our sub allocations). So we have not really seen any effect of RFC 2050 (I don't think) because we were already being very conservative before it was published. We maintain a very strict regime with our customers, and actually, although our customers are all corporate users, we commonly allocate /27s to them if they cannot justify more space.

Jon Postel as a Genuity Board Member

You asked how Jon Postel came to be on our board. As far as I know, it is the only board he sits on. He sits in one of my two board positions. He helps me provide the Internet's view to the Bechtel side of the board, so that the decisions they make are for the Internet, not against it. He helps me lend weight to making sure that we help, not hurt. We've funded well into 6 figures of software development through Vixie and Associates. Jon helped make sure that the board understood that making the applications 'freeware' and public domain was a 'good' thing. Hence "Vulture" and " Vulture 2" and Turk, which are available from Vixie's home page, and are used by many. Also we've ended up funding indirectly some of the other stuff that Paul does, related to bind, etc.

Jon made it clear, as part of his involvement in our board, that his connection with IANA etc would be one way - he would be looking for a flow of help in the other direction only. We've sponsored ISOC at the fullest level because of him, we provide significant services to ISI, JPL, CalTech, and USC, and on the other hand we have disqualified ourselves from opportunities where his influence might have helped (We will *not* be applying/bidding to be one of the registrars in the new TLD world unless it is clear that the decision making process can be shown demonstrably to be untainted by any connection - currently unlikely).

The interesting thing is that Jon has helped make us a good net citizen in an environment where one would believe that a privately held company with very deep pockets could have instantly become a major force for the 'dark' side.

You would have to ask Jon for his full motivation, but I will tell you that you can spend as much time combing through the records as you want, and you will see that all the apparent advantages have accrued on the Internet's side. From our side, we have managed to build a solid business, based on pretty strong morals and principles, and have attracted some pretty good people who also appreciate the fact that we are able to operate without having to look over our shoulders. Jon was instrumental in this.

By the way, on the few occasions that I have asked Jon questions where he felt a conflict, he has had no hesitation in telling me so. I have respected that. I'd say that Genuity owes some significant part of its success to being guided well by Jon in the good ways of the Internet. And overall I think I can say that the net itself is a better place. [Editor: Unfortunately, we did not recall, until we were going to press, that the member of a Board of Directors of a corporation has a legal, fiduciary reponsibility to that corporation. Thus, contrary to Rodney's assertion about Jon's insisting that his membership not benefit Genuity, it could be said that, if Jon had information about an action that he would take as IANA, and he did not disclose it to Genuity, he might be acting in violation of his legal, fiduciary responsibility to Genuity. If Jon served on an advisory board, this liability would vanish. Unfortunately the web page http://www.genuity.net/about_genuity/officers.html makes it very clear he is a full member of the Board of Directors of the corporation. We see this as one more example that, filled with good intentions as he may be, Jon has gotten in over his head.]

=========

November 14, 1997: since sensitivities are so raw let me make a couple more things perfectly clear. It is my understand that among the original generation of internet founders Jon has likely profited from his full time dedication to the network far less than any one else. I have talked with a lot of people who for various reasons are unhappy with things that Jon has recently done. However not once has anyone person ever suggested that jon did anything for his personal benefit or profit.

NEVERTHELESS: with the internet now a multi billion dollar a year global industry, the same informal standards of operation for IANA that served the internet well up to a couple of years ago are likely inadequate. IANA is perhaps the most critical set of functions in the entire network. the idea that one fallable human being like Jon - however well intentioned he may be and I am sure that he is well intentioned - can be both decision maker and court of last resort on issues as contentious as IP allocation and DNS - is an idea that is losing credibility. Given the last two years of DNS wars - if I may be allowed to have an opinion of MY own - it is especially important that, operating in an arena where most people no longer know him personally, Jon must take great care to avoid even the APPEARNCE of any conflict of interest.

************************************************************************

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IRVING, Texas - GTE Internetworking, a subsidiary of [GTE Corporation], today announced that it will acquire Genuity Inc., a subsidiary of Bechtel Enterprises. The terms of the transaction were not disclosed. The acquisition is subject to customary closing conditions, including the expiration of applicable waiting periods under the Hart-Scott-Rodino Act. The acquisition will be completed through GTE Internetworking's affiliate, BBN Corporation. It is anticipated that the transaction will be completed by the end of the year.

GTE Internetworking, already a leading provider of Web hosting, is pursuing its strategy of enabling customers to transfer their business applications to the Internet. Moving mission-critical business processes to the Web allows customers to broaden market reach, lower the cost of sales, distribution, and support, and transform the relationships between companies and their customers.

GTE Internetworking has more than a thousand Web hosting customers, including some of the busiest sites on the Web--ZD.Net, Four11, LA Times, Boston Globe, Tribune Corporation, and NBC Interactive. The combination of GTE Internetworking with Genuity will provide an expanded global footprint with 12 fully networked data centers, creating an organization with an unprecedented ability to provide distributed Web hosting services.

Genuity is a value-added provider of distributed application hosting solutions. Genuity has strategically located data centers and a sophisticated load-balancing technology, Hopscotch, which together ensure efficient delivery of data across the Internet. Genuity's unique Hopscotch technology helps solve busy server problems, network congestion, and Internet latency to deliver the highest levels of performance. Its customers include cnet, CMP Publications, Inc., Excite, InterTel, and MCA/Universal.

"With this acquisition we continue to build the critical set of assets necessary to advance our position as a trusted provider of the enabling infrastructure for Internet commerce. We are combining our high-speed national backbone with global reach, robust public and private peering relationships, advanced hosting and distributed application management with our security and systems integration expertise to enable customers to migrate mission critical applications and business processes to the network," said George H. Conrades, president of GTE Internetworking.

"Genuity's network technology, and most importantly, its people, are what give us the competitive advantage," said T. Geir Ramleth, president and CEO of Genuity. "The integration of our robust hosting infrastructure and powerful Hopscotch technology with GTE Internetworking's extensive resources will create a synergistic union. And our similar cultures and vision for the future provide a unique opportunity for customers looking to transform their businesses using Internet technology."

"Genuity's robust distributed application hosting architecture will be instrumental to GTE Internetworking as we continue to focus on delivery of the most advanced distributed network-centric solutions," said Mark Shull, vice president and general manager of GTE Internetworking's Network Centric Solutions group. "This combination allows us to build on our existing base of technology and expertise to provide Internet infrastructure services for electronic commerce."

About Genuity

Genuity is a subsidiary of Bechtel Enterprises, the development, financing and ownership affiliate of the Bechtel organization. Genuity is a value-added provider of distributed application hosting, access and security technologies that provide cost-effective, scaleable and highly reliable Internet infrastructure for commercial applications. With headquarters in San Francisco, Genuity also has data centers established in Chicago, Los Angeles, New York, Phoenix, San Jose, Washington, D.C. and London. Genuity is the creator of Hopscotch, a service allowing organizations to ensure the accessibility and performance of their mission-critical Internet sites by eliminating DNS look-up failures and solving Internet latency problems. For more information, please call 1-888-Genuity, or visit the company's World Wide Web site located at Genuity

About Bechtel Enterprises

Bechtel Enterprises, Inc. is the development, financing and ownership affiliate of the Bechtel organization, a premier global engineer - constructor. It is a leader in the privatized infrastructure market, with ownership interests in 9 companies and 29 projects in the power, water, transportation, telecommunications, and technology sectors. Since 1990 alone, Bechtel Enterprises has participated in arranging nearly $12 billion in project financing. For more information about Bechtel please visit the company's World Wide Web site at Bechtel

About GTE Internetworking

GTE Internetworking, a unit of GTE Corporation (NYSE:GTE), includes the recently acquired BBN Corporation, which 28 years ago developed the ARPANET, the forerunner to today's Internet, and GTE Intelligent Network Services, which provides Internet services to consumers and small businesses.

GTE Internetworking offers customers, from consumers to Fortune 500 companies, a full spectrum of Internet services and solutions including dial-up and dedicated Internet access, end-to-end network management, high-performance distributed hosting and applications solutions, managed security, and systems integration, for customers migrating their mission-critical business applications to the Internet. GTE Internetworking draws upon BBN's expertise in funded research and development of advanced technologies, including satellites, digital radio, multi-gigabit routers, security, and speech, and GTE's strong existing telecommunications services, including local and long distance, wireless, paging, video, research, and Internet. The address for the GTE Internetworking's home page is www.bbn.com.