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Subject: Re: IP-tel
From: Bengt Gördén <[log in to unmask]>
Reply-To:Network management discussion for Nordic region <[log in to unmask]>
Date:Fri, 24 Jan 2003 13:18:47 +0100

text/plain (36 lines)

On Fri, Jan 24, 2003 at 11:26:59AM +0100, Patrik Fältström wrote:
> The investment for that backbone is very high.
> So, you as ISP do not buy a backbone based on the total amount of
> possible traffic, but instead based on the amount of traffic the users
> actually use.
> That means that even though the investment is a fixed cost, it is based
> on the actual volume the customers use, and not the installed max
> bandwidth per customer.
> Because of this, your investment is related to the volume based
> debiting (if available).

It is related only because the providers choose to do debiting that
way. The investment is only related to actually what it costs to buy
and install. What you do have as a dynamic in this is the operations
and the upgrade of the network and that is volume related. But thats
not the big investment (just look at Gigasunet). Thus you do not need
volume based debiting.

What you as a customer pay is what the providers economical
department have figured out is the amount that you can stand without
looking towards another provider. And the easiest way to implement
that is by using volume based debiting.

> Q.E.D.

Qui Nimium probat, nihil probat. (according to my Latin speaking
wife). :-)

- Bengan -----------------------------------------------------------
- KTHNOC/SUNET/NORDUnet | | 08-7906586 -

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