[180192] in North American Network Operators' Group
Capacity/transit costs vs growth
daemon@ATHENA.MIT.EDU (Jean-Francois Mezei)
Wed May 27 17:36:26 2015
X-Original-To: Nanog@nanog.org
Date: Wed, 27 May 2015 17:36:23 -0400
From: Jean-Francois Mezei <jfmezei_nanog@vaxination.ca>
To: Nanog@nanog.org
Errors-To: nanog-bounces@nanog.org
I am looking for some rough estimates of the ratio of capacity
(equipment) pricing declines versus average increase in end user capacity.
For instance, say end user average capcity usage increases 50% over 3
years, would the ISP's costs also increase by 50% ? Or would increased
efficency of equipment result in a 50% decrease in capacity costs
yielding roughly the same total cost to the service provider ?
So I am looking are some sort of ratio of gross costs
increases/decreases relative to end user usage increase in usage over time.
Context:
Wholesale services in Canada are priced linearly and there is a process
trying to convince the CRTC to review them ASAP. So if average use
grows from 1mbps during peak to 1.2mbps, we are looking at 20% increase
in costs in a linear pricing scheme. But if this happens over a period
where there have been improvements in equipment/efficiency, then one
would think the increase in costs would be less than 20%.
So I am looking for any and all information that can help convince the
regulator that current linear increase is not right and needs a review.
any help appreciated.
