[52292] in North American Network Operators' Group
Re: Pricing model for transit services
daemon@ATHENA.MIT.EDU (Lane Patterson)
Mon Sep 23 15:51:23 2002
Date: Mon, 23 Sep 2002 12:50:17 -0700
From: Lane Patterson <lane@laneandmimi.com>
To: Alex Rubenstein <alex@nac.net>
Cc: "Olivier.Bonaventure@info.fundp.ac.be" <Olivier.Bonaventure@info.fundp.ac.be>,
"suh@info.ucl.ac.be" <suh@info.ucl.ac.be>,
"nanog@merit.edu" <nanog@merit.edu>
In-Reply-To: <Pine.WNT.4.44.0209231122220.1652-100000@phosphorus.hq.nac.net>
Errors-To: owner-nanog-outgoing@merit.edu
On Mon, Sep 23, 2002 at 11:26:22AM -0400, Alex Rubenstein <alex@nac.net> wrote:
>
>
>
> > - flat fee for a L Mbps link
>
> Also known as 'fractional' or 'tiered.' $x for y mb/s, and it is
> rate-limited.
>
>
> > - volume based, y $ per Mbps (95% quantile) for a L Mbps link
> > - burstable, flat fee for x Mbps on a L Mbps and z $ per Mbps above x
>
> These two are essentially the same. You do have three variations of
> usage-based, however:
>
> a) vth percentile: $x per y zzzbits/sec, with a t committment.
> Occasionally, any usage over t has a different price.
In my somewhat limited experience, "t" commitment is usually at least 10% of
wire speed. Though if transit is coming off low-cost LAN ports in data
center environments, sales folks will probably approve lower commits if
pressured.
Also, some large ISP's have a policy that you must buy the whole pipe
unmetered if your commit is >50% pipe speed.
And there are at least 4 ways of computing 95th percentile, though I'm sure
there've already been threads on this.
Cheers,
-Lane
>
> b) 'Average usage', which is is the same as A, but using an averaging
> measurement system, rather than a percentile system (50th percentile is
> NOT the same as, or even relevant to, average).
>
> c) counting bytes: $x per y bytes.
>
>
> -- Alex Rubenstein, AR97, K2AHR, alex@nac.net, latency, Al Reuben --
> -- Net Access Corporation, 800-NET-ME-36, http://www.nac.net --
>
