Re: Caps (was Re: AT&T UVERSE Native IPv6, a HOWTO)

[Jay Ashworth <jra () baylink com>]

----- Original Message -----
> From: "Phil Karn" <karn () philkarn net>

> On 12/06/2013 05:54 AM, Mark Radabaugh wrote:
> > Currently, without a limit, there is nothing to convince a end user to
> > make any attempt at conserving bandwidth and no revenue to cover the
> > cost of additional equipment to serve high bandwidth customers. By
> > adding a cap or overage charge we can offer higher speed plans.
>
> Why is that?
>
> Just guarantee each user a data rate that depends on how much he pays.
> Charge him by what it costs you to build and maintain that much
> capacity. Lots of mechanisms exist to do this: token bucket, etc.
>
> He gets more than his guaranteed capacity only when others don't use
> theirs. Otherwise he won't. If that's unacceptable to him, then he has
> the choice of paying you more to upgrade your network or waiting for
> others to stop using their guarantees.
>
> It costs you nothing to let people use capacity that would otherwise go
> to waste, and it increases the perceived value of your service. Your
> customers will eventually find themselves depending on that excess
> capacity often enough that at least some will be willing to pay you
> more to guarantee that it'll be there when they really want it.

+10

We've forgotten the Committed Information Rate already?

Cheers,
-- jra
-- 
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Jay R. Ashworth                  Baylink                       jra () baylink com
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