Re: 95th Percentile again (was RE: C&W Peering Problem?)

["Richard A. Steenbergen" <ras () e-gerbil net>]

On Sun, 3 Jun 2001, Alex Rubenstein wrote:

> > $1 per gigabyte is equivalent to $316/Mbit fairly averaged.
>
> Yes, but:
>
> Let's assume that someone sells at $1/gig, then is billed
> $316/mb/s/mon by thier provider. Let's further assume that the
> customer who is buying at $1/gig is averaging 1 mb/s, but has perfect
> sine-wave bandwidth usage, ie, 0 kb/s at midnight, 1 mb/s at 6a, 2
> mb/s and noon, 1 mb/s at 6p, and 0 mb/s again at midnight. (Agreeing
> that a perfect sine wave of usage is mostly unlikely, but it's a
> reasonable assumption that said customer won't be at the average all
> month). Problem: Provider is billed for 2 mb/s.

If you can't get enough extra customers based on your better pricing,
don't lower your price (or sell it for $2/gig).

-- 
Richard A Steenbergen <ras () e-gerbil net>       http://www.e-gerbil.net/ras
PGP Key ID: 0x138EA177  (67 29 D7 BC E8 18 3E DA  B2 46 B3 D8 14 36 FE B6)