North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: BBN/GTEI
[In the message entitled "Re: BBN/GTEI" on Aug 21, 23:20, Bruce Hahne writes:] > >On-net facilities have made distance-sensitive pricing in most metro areas a > >thing of the past. Sub $0.04 per DS0-mile long-haul rates have made long > >haul circuits very affordable. High speed WDM dark fiber routes will make > >long haul very, very cheap in the next 2 years. > > This is the old "bandwidth is so cheap that it's free" argument. True, > bandwidth is now inexpensive enough for a single DS0 that it's becoming > counterproductive, from a marketing standpoint, for the telco to attempt to > differentiate based on distance for a voice call. But if we're ever to > arrive at the day when I can turn on my 100Mbps video-over-IP feed to my > home PC over my FTTH connection, and expect to actually get reasonable > performance, we're probably going to need both metering and inter-provider > settlements. > What I said was "distance-sensitive pricing in most metro areas" is not a market reality. Billing for bandwidth used is a good thing. Billing for packet-flow-ds0-miles-per-aardvark is madness. Figure out what your costs are, and bill your customers appropriately. A customer in Borneo is going to have to pay more that a customer in Borneo, Idaho, who may have to pay more than a customer in Dallas, who may have to pay more than a customer in New York. Large metro areas have economies of scale that make very high speed pipes available. -- Dave Rand [email protected] http://www.bungi.com
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