North American Network Operators Group
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95th Percentile = Lame

  • From: James Thomason
  • Date: Sun Jun 03 14:48:53 2001 
If I am not mistaken, the true "benefit" to 95% billing is that it allows
the provider to charge for bits they never delivered.  The average will
skew on a burst of traffic (>5% of the average) and you pay for it as if
you had averaged that level the entire time. 

It seems like quite an irrational settlement model. Why not simply bill
for every bit that crosses your network?  There certainly is a per-bit
cost.

I cannot, off the top of my head, think of another telecommunications
industry that relies on a system of averages for settlement.  It speaks
pretty clearly of how immature the Internet industry really is.  

Or maybe not.  Perhaps the electrical suppliers here in California
should bill in the 95th percentile, and cite the Internet as a rational
example.

Regards, 
James