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On Mon, 26 Aug 1996, Sean Donelan wrote: > Depending how you account > for interconnect costs, a provider selling $2700/month T1 packet-switched > connections with a 23:1 bandwidth overbooking ratio generates the same > revenue as analog voice circuits at 10cents/minute - 4cents/minute > interconnect fees. You mean gross revenue don't you? Also, that price seems steep for 23:1 ratio. Wouldn't that be closer to the price for 10:1? The other factor here is costs. The cost of billing 10 cent a minute phone calls is HUGE compared to billing a bunch of monthly flat rate T1's. > Well, there was a few rounding errors long the way, but 67Kbps is darn > close to a DS0 at 6cents/minute. Bad news for the Internet telephony > folks, there still ain't no such thing as a free lunch. Don't forget that Internet telephony uses compression. I don't know if they use 4:1 compression but I do know that companies like Gandalf can put 4 voice lines through a DS0 and still leave 19200 bps for data. > If I'm paying for voice telephone level quality, am I getting it? You pay for what you get. If you don't like the quality, go somewhere else. Interestingly, the advent of Internet phone allows consumers a choice in quality that they didn't have before. > Internet Network Operators (to relate this slightly to NANOG) need to > look at diversifying their Internet connections between providers. Does this mean that Sprint should be buying transit form MCI and ANS instead of just using their own lines? ;-) Michael Dillon - ISP & Internet Consulting Memra Software Inc. - Fax: +1-604-546-3049 http://www.memra.com - E-mail: [email protected] - - - - - - - - - - - - - - - - -
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