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Re: ISPs slowing P2P traffic...

  • From: William Herrin
  • Date: Wed Jan 09 17:47:12 2008
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On Jan 9, 2008 3:04 PM, Deepak Jain <[email protected]> wrote:
> However, my question is simply.. for ISPs promising broadband service.
> Isn't it simpler to just announce a bandwidth quota/cap that your "good"
> users won't hit and your bad ones will?

Deepak,

No, it isn't.

The bandwidth cap generally ends up being set at some multiple of the
cost to service the account. Someone running at only half the cap is
already a "bad" user. He's just not bad enough that you're willing to
raise a ruckus about the way he's using his "unlimited" account.

Let me put it to you another way: its the old 80-20 rule. You can
usually select a set of users responsible for 20% of your revenue
which account for 80% of your cost. If you could somehow shed only
that 20% of your customer base without fouling the cost factors you'd
have a slightly smaller but much healthier business.

The purpose of the bandwidth cap isn't to keep usage within a
reasonable cost or convince folks to upgrade their service... Its
purpose is to induce the most costly users to close their account with
you and go spend your competitors' money instead.

'Course, sometimes the competitor figures out a way to service those
customers for less money and the departing folks each take their 20
friends with them. It's a double-edged sword which is why it rarely
targets more than the hogs of the worst 1%.

Regards,
Bill Herrin





-- 
William D. Herrin                  [email protected]  [email protected]
3005 Crane Dr.                        Web: <http://bill.herrin.us/>
Falls Church, VA 22042-3004