North American Network Operators Group

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Re: flat vs non-flat charging

  • From: Richard Irving
  • Date: Fri May 29 15:38:59 1998

Jerry Scharf wrote:
> 
> I think the idea of distance charging is going away in many cases. With WDM,
> the cost of the WDM and SONET eqiupment on the ends of a fully populated 32
> channel per fiber, 144 strand pull vastly outweight end-to-end fiber costs of
> anything pulled through the ground.

Not true, long haul fiber *way* outways the initial ADM
investment over 
about 1 years time frame, just not up-front. Remember: Dark
fiber is
a monthly re-occuring.....


> When you add routers and the like on top
> of that, the distance issue really goes away and it becomes on of network
> topology hops. 

  Only for small ISP's. This is not even *slightly* true of
transcontinental
runs. Reality check, it costs me *way* more to put up long
haul, than it does
local.  Something needs to account for this....

But, what?

>Can anyone with figures for new intercontinental pulls say
> whether this is true there as well (project oxygen marketing claims this,
> but...)?
> 
> Using archaic telephone pricing models to argue cost of providing bulk IP
> services is just not right.

  Some of us see it as: We are overcharging customers who
don't use their
service much, to offset  *not billing* enough for those who
do....
I don't call that archaic. But, I also don't think it is
going to change
anytime soon....


Richard

> 
> jerry