[22069] in North American Network Operators' Group

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Re: More Sidgemore on per-bit pricing

daemon@ATHENA.MIT.EDU (Michael P. Lyle)
Sat Dec 5 19:20:44 1998

Date: Sat, 5 Dec 1998 16:06:30 -0800
From: "Michael P. Lyle" <icee@phoenix.lyle.org>
To: nanog@merit.edu
In-Reply-To: <199812052307.AA03332@world.std.com>; from Barry Shein on Sat, Dec 05, 1998 at 06:07:35PM -0500

One notable thing about per-bit pricing, as well, is that once one
provider really rolls it out and pushes it at a low cost, it's bound
to become a surety.  Suddenly the provider with per-bit billing will
be able to steal all of the low-usage customers, while leaving the
expensive near-saturation customers at other providers... effectively
raising their cost per DS1...  

As to the merits of per-bit pricing.. I could certainly see myself
purchasing a lot more bandwidth if I could use it on demand, even
with the possibility of someone deciding to smurf me.  And think of
other positive effects-- there will be real economic forces urging
customers of providers not to be smurf relays, etc.  

Mike

-- 
Michael P. Lyle
Senior Security Architecture Analyst
Exodus Communications, Inc.
icee@phoenix.lyle.org    <- PLAY
mlyle@exodus.net         <- WORK

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