North American Network Operators Group

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Re: MFS WorldCom/WilTel/LDDS

  • From: Alex.Bligh
  • Date: Mon Sep 02 06:08:56 1996

> I guess your view is different because of difference between
> pricing of leased lines.  If you have a hugely expensive international
> private line, you have to sell its capacity for prices which make
> customers unlikely to buy flat-rate.  It's not like that in US.
> 
> >The trend is for flat rate dialup and usage based rates for leased
> >line.
> 
> Sorry, this does not correspond to what i've seen.  People who buy
> a T-1 usually have enough traffic to fill it.  Faster WWW access
> encourage faster browsing, that's it.

Having several expensive IPLs that's not what we see either. I wonder
if it's more to do with people being more keen to charge per packet
if they are paying per packet (either in the obvious metered manner,
or if they are using an upstream link which is inevitably going to
be flat-topped, which works out much the same as pay per packet). If
so this might help explain the difference of views given that I'm in UK
which has rather a different connectivity model from continental Europe.
As a general point, when providers have cheap / a surfeit of outgoing
bandwidth, they are bound to be more concerned about building customer
base numerically. When bandwidth is in short supply or expensive, they
are going to be concerned more about how much each customer is using.
Certainly in the US input cost is less price sensitive to upstream
bandwidth costs than in continental Europe (if only as it's a smaller
% of total cost).

Alex Bligh
Xara Networks


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