North American Network Operators Group

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Re: More Sidgemore on per-bit pricing

  • From: Michael P. Lyle
  • Date: Sat Dec 05 19:24:28 1998

One notable thing about per-bit pricing, as well, is that once one
provider really rolls it out and pushes it at a low cost, it's bound
to become a surety.  Suddenly the provider with per-bit billing will
be able to steal all of the low-usage customers, while leaving the
expensive near-saturation customers at other providers... effectively
raising their cost per DS1...  

As to the merits of per-bit pricing.. I could certainly see myself
purchasing a lot more bandwidth if I could use it on demand, even
with the possibility of someone deciding to smurf me.  And think of
other positive effects-- there will be real economic forces urging
customers of providers not to be smurf relays, etc.  


Michael P. Lyle
Senior Security Architecture Analyst
Exodus Communications, Inc.
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