[10770] in Commercialization & Privatization of the Internet
Re: Settlements
daemon@ATHENA.MIT.EDU (Craig Partridge)
Tue Mar 8 15:06:42 1994
To: com-priv@psi.com
Cc: francis@avalle.insoft.com
In-Reply-To: Your message of Tue, 08 Mar 94 08:23:56 -0800.
From: Craig Partridge <craig@aland.bbn.com>
Date: Tue, 08 Mar 94 08:27:52 -0800
>Suppose the IXC simply billed each connected provider a flat amount
>per month based on the size of the provider's pipe (or pipes) into the
>long-haul network. So, for instance, if PSI had T1 connections to the IXC
>in LA and DC, PSI would pay for two T1 connections.
On the other hand, if Ma & Pa Kettle set up a new provider, with a T1
link from the start (to avoid paying for plant they'll discard when
they upgrade), and take six months to get enough customers to go over
half capacity, they'll be paying full price for their underused link,
even though they're using much less of the IXC's capacity than each of
PSI's links.
Well, yes, there are always gradations of service. Suppose a restaurant
serves one a meal portion that's bigger than one wants. Does one return the
uneaten portion and ask for a refund?
Ma&Pa Kettle would probably have several options:
* 56 Kb/s
* fractional T1
* T1
* T3
* [I hear fractional T3 is becoming available]
* OC3
They can pick what's closest for them.
Craig
