[101854] in North American Network Operators' Group
RE: An Attempt at Economically Rational Pricing: Time Warner Trial
daemon@ATHENA.MIT.EDU (Rod Beck)
Sat Jan 19 15:26:46 2008
Date: Sat, 19 Jan 2008 20:25:27 -0000
From: "Rod Beck" <Rod.Beck@hiberniaatlantic.com>
To: "Scott McGrath" <mcgrath@fas.harvard.edu>,
"Rod Beck" <roderickbeck@tmo.blackberry.net>
Cc: <owner-nanog@merit.edu>, "Patrick W. Gilmore" <patrick@ianai.net>,
<nanog@merit.edu>
Errors-To: owner-nanog@merit.edu
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If service is metered, it doesn't imply 25 cents a minute. It would =
probably be based on bytes transferred and would probably be less =
expensive for the bulk of users than the current flat rate pricing. If =
the cable companies are telling the truth, roughly 5% of their customers =
generate 50% of the traffic. That implies that the bulk of users are =
effectively subsidising the five percent of heavy users.=20
So any sort of well crafted usage-based pricing, would lower the amount =
paid by the vast majority of users and raise it dramatically for the =
five percent of heavy users.
Usage-based pricing would give the cable companies and telephony =
incumbents an incentive to upgrade infrastructure and actually compete =
for the heavy users. The heavy users would be the most profitable =
customers. New technologies would be welcomed instead of discouraged.=20
Ironically, the Net Neutrality debate is about the access providers =
trying to impose usage-based pricing through the backdor - on the =
content providers. It goes without saying I oppose it. It's the end =
users who decide what they view and hence ultimately generate the =
traffic flows. So the end users should be subject to the usage-based =
pricing.=20
Regards,=20
Roderick S. Beck
Director of European Sales
Hibernia Atlantic
1, Passage du Chantier, 75012 Paris
http://www.hiberniaatlantic.com
Wireless: 1-212-444-8829.=20
Landline: 33-1-4346-3209.
French Wireless: 33-6-14-33-48-97.
AOL Messenger: GlobalBandwidth
rod.beck@hiberniaatlantic.com
rodbeck@erols.com
``Unthinking respect for authority is the greatest enemy of truth.'' =
Albert Einstein.=20
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<P><FONT SIZE=3D2>If service is metered, it doesn't imply 25 cents a =
minute. It would probably be based on bytes transferred and would =
probably be less expensive for the bulk of users than the current flat =
rate pricing. If the cable companies are telling the truth, roughly 5% =
of their customers generate 50% of the traffic. That implies that the =
bulk of users are effectively subsidising the five percent of heavy =
users.<BR>
<BR>
So any sort of well crafted usage-based pricing, would lower the amount =
paid by the vast majority of users and raise it dramatically for the =
five percent of heavy users.<BR>
<BR>
Usage-based pricing would give the cable companies and telephony =
incumbents an incentive to upgrade infrastructure and actually compete =
for the heavy users. The heavy users would be the most profitable =
customers. New technologies would be welcomed instead of =
discouraged.<BR>
<BR>
Ironically, the Net Neutrality debate is about the access providers =
trying to impose usage-based pricing through the backdor - on the =
content providers. It goes without saying I oppose it. It's the end =
users who decide what they view and hence ultimately generate the =
traffic flows. So the end users should be subject to the usage-based =
pricing.<BR>
<BR>
Regards,<BR>
<BR>
Roderick S. Beck<BR>
Director of European Sales<BR>
Hibernia Atlantic<BR>
1, Passage du Chantier, 75012 Paris<BR>
<A =
HREF=3D"http://www.hiberniaatlantic.com">http://www.hiberniaatlantic.com<=
/A><BR>
Wireless: 1-212-444-8829.<BR>
Landline: 33-1-4346-3209.<BR>
French Wireless: 33-6-14-33-48-97.<BR>
AOL Messenger: GlobalBandwidth<BR>
rod.beck@hiberniaatlantic.com<BR>
rodbeck@erols.com<BR>
``Unthinking respect for authority is the greatest enemy of truth.'' =
Albert Einstein.<BR>
<BR>
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