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RE: BitTorrent swarms have a deadly bite on broadband nets

daemon@ATHENA.MIT.EDU (Rod Beck)
Thu Oct 25 14:40:15 2007

Date: Thu, 25 Oct 2007 19:29:49 +0100
From: "Rod Beck" <Rod.Beck@hiberniaatlantic.com>
To: "Iljitsch van Beijnum" <iljitsch@muada.com>
Cc: "Adrian Chadd" <adrian@creative.net.au>, <nanog@merit.edu>
Errors-To: owner-nanog@merit.edu


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On 24-okt-2007, at 17:39, Rod Beck wrote:

> A simpler and hence less costly approach for those providers =20
> serving mass markets is to stick to flat rate pricing and outlaw =20
> high-bandwidth applications that are used by only a small number of =20
> end users.

That's not going to work in the long run. Just my podcasts are about =20
10 GB a month. You only have to wait until there's more HD video =20
available online and it gets easier to get at for most people to see =20
bandwidth use per customer skyrocket.

There are much worse things than having customers that like using =20
your service as much as they can.

Oh, let me be clear. I don't know if it will work long term. But =
businessmen like simple rules of thumb and flat rate for the masses and =
banishing the rest will be the default strategy. The real question is =
whether a pricing/service structure can be devised that allows the mass =
market providers to make money off the problematic heavy users. If so, =
then you will get a tiered structure: flat rate for the masses and a =
more expensive service for the Bandwidth Hogs.=20

Actually, there are not many worse things than customers that use your =
service so much that they ruin your business model. Yes, I believe the =
industry needs to reach accomodation with the Bandwidth Hogs because =
they will drive the growth, and if it is profitable growth, then all =
parties benefit.=20

But you are only going to get the Bandwidth Addicts to pay more is by =
banishing them from flat services. They won't go gently into the night. =
In fact, I am sure how profitable are the Addicts given the stereotype =
of the 20 something ...

- R.=20

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<P><FONT SIZE=3D2>On 24-okt-2007, at 17:39, Rod Beck wrote:<BR>
<BR>
&gt; A simpler and hence less costly approach for those =
providers&nbsp;<BR>
&gt; serving mass markets is to stick to flat rate pricing and =
outlaw&nbsp;<BR>
&gt; high-bandwidth applications that are used by only a small number =
of&nbsp;<BR>
&gt; end users.<BR>
<BR>
That's not going to work in the long run. Just my podcasts are =
about&nbsp;<BR>
10 GB a month. You only have to wait until there's more HD =
video&nbsp;<BR>
available online and it gets easier to get at for most people to =
see&nbsp;<BR>
bandwidth use per customer skyrocket.<BR>
<BR>
There are much worse things than having customers that like =
using&nbsp;<BR>
your service as much as they can.<BR>
<BR>
Oh, let me be clear. I don't know if it will work long term. But =
businessmen like simple rules of thumb and flat rate for the masses and =
banishing the rest will be the default strategy. The real question is =
whether a pricing/service structure can be devised that allows the mass =
market providers to make money off the problematic heavy users. If so, =
then you will get a tiered structure: flat rate for the masses and a =
more expensive service for the Bandwidth Hogs.<BR>
<BR>
Actually, there are not many worse things than customers that use your =
service so much that they ruin your business model. Yes, I believe the =
industry needs to reach accomodation with the Bandwidth Hogs because =
they will drive the growth, and if it is profitable growth, then all =
parties benefit.<BR>
<BR>
But you are only going to get the Bandwidth Addicts to pay more is by =
banishing them from flat services. They won't go gently into the night. =
In fact, I am sure how profitable are the Addicts given the stereotype =
of the 20 something ...<BR>
<BR>
- R. </FONT>
</P>

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