North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: Why do some ISP's have bandwidth quotas?
On Oct 4, 2007, at 1:29 PM, Justin M. Streiner wrote:
Hint: whenever/wherever service providers are able to secure the majority of their essential inputs on a predictable fixed cost basis (e.g., circuits rather than variable IP transit), they tend to extend the same pricing model to their customers. However, in some cases there is a major lag separating the timing of the change in the provider-level cost model and the change in customer-facing pricing. Absent competition, the lag may be infinite. In other cases, there may be more variable costs associated with service delivery than is immediately obvious. Southern Cross was completed in late 2000, and not long after (couple of years) incumbent operators in AUNZ had done a pretty good job of leveraging the new infrastructure to effect just the sort of variable- to-fixed cost conversion described above. Marginal improvements in customer pricing are just starting to happen in the last year or so... TV
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