North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: More Sidgemore on per-bit pricing
I know this is a bit late sorry... Well what if I had a xDSL local loop from someone like Northpoint for something like $150 and then did the per bit model. A T1 (or even slightly less) for $350 starts to look rather attractive to a lot of people. At 3:05 PM -0500 12/5/98, Daniel Senie wrote: >Barry Shein wrote: >> >> One possible positive effect (for the consumer) of "per-bit" pricing >> is the opportunity to buy larger pipes but only pay for what you use. >> >> Right now flat-rate pricing mostly assumes you're going to, within >> some statistical model, actually use the bandwidth you get, or >> certainly that someone buying a DS3 is going to use a lot more >> bandwidth, on average, than someone with a DS1. >> [Rest of post deleted for brevity] > >I wonder if the northeast is more expensive than elsewhere, but from my >recent shopping for T1's for myself and my clients, I find the cost of >the service over a T1 isn't the budget buster. For one location, all T1 >circuits (before buying IP service, just the telco charge) is $613 a >month. To another location, the circuits are $900 to $1500 a month. >Adding $500 to $1000 on top of that for full-rate service, vs. adding >$200-$500 on top of that for "burstable" service just doesn't generate >much excitement. > >Until the base telco circuit prices are lowered dramatically, the >pricing of packet service over them, while not "noise," is certainly >less interesting. > >Now, if the whole circuit, T1 and IP packet service, were all priced on >the basis of traffic, that'd be interesting. An underutilized T1 would >incur some small base charge, plus traffic/usage increments beyond that. >That'd be quite attractive, though I doubt the phone companies would >think so. > >Dan > >-- >----------------------------------------------------------------- >Daniel Senie [email protected] >Amaranth Networks Inc. http://www.amaranthnetworks.com Thank you, David Diaz Chief Technical Officer Netrail, Inc email: [email protected] pager: 888-576-1018 office: 888-NETRAIL Fax: 404 522-2191 Colo facilities: Atlanta-NAP, Miami, Arlington, Chicago, San Francisco -------------------------------------------------
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