[22071] in North American Network Operators' Group
Re: More Sidgemore on per-bit pricing
daemon@ATHENA.MIT.EDU (sthaug@nethelp.no)
Sat Dec 5 20:12:58 1998
From: sthaug@nethelp.no
To: icee@phoenix.lyle.org
Cc: nanog@merit.edu
In-Reply-To: Your message of "Sat, 5 Dec 1998 16:06:30 -0800"
Date: Sun, 06 Dec 1998 01:56:34 +0100
> 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...
I have seen it argued several times that if the price is "low enough",
customers prefer a fixed price, even if that price is slightly higher
than they could get by a variable-rate pricing scheme.
Why do you think per-bit pricing would be significantly different here?
Steinar Haug, Nethelp consulting, sthaug@nethelp.no
