More Sidgemore on per-bit pricing

Sun Dec 6 00:56:34 UTC 1998

> One notable thing about per-bit pricing, as well, is that once one
> provider really rolls it out and pushes it at a low cost, it's bound
> to become a surety.  Suddenly the provider with per-bit billing will
> be able to steal all of the low-usage customers, while leaving the
> expensive near-saturation customers at other providers... effectively
> raising their cost per DS1...  

I have seen it argued several times that if the price is "low enough",
customers prefer a fixed price, even if that price is slightly higher
than they could get by a variable-rate pricing scheme.

Why do you think per-bit pricing would be significantly different here?

Steinar Haug, Nethelp consulting, sthaug at nethelp.no