Re: More Sidgemore on per-bit pricing

[David Diaz <davediaz () netrail net>]

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                                        dts () senie com
> Amaranth Networks Inc.            http://www.amaranthnetworks.com


Thank you,
David Diaz
Chief Technical Officer
Netrail, Inc

email:   davediaz () netrail net
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