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

Sun Jun 3 19:14:32 UTC 2001

(Taking this back on list for people to critique as they please.)

> Date: Sat, 2 Jun 2001 21:50:39 -0700
> From: David Schwartz <davids at webmaster.com>

[ snip ]

> The problem with these other billing methods is primarily that they fail
> to reward people for taking effort to smooth out their usage. If my
> customers can do their bulk transfers off-peak, I'd like to reward them
> for it. That way they save me money.

People would probably balk at the complexity and variability, but I've
contemplated a two-stage billing model...

Have the base rate determined purely by traffic volume, i.e. GB/mo.

Now apply an adjustment factor based on x = (95th / mean).

	x = 1.00 is perfectly flat; give substantial discount
	x = 1.50 is a moderate sine wave; consider this typical T-3
	x = 2.50 is a typical T-1

	x = 1.00 to 1.249# --> 25% off
	x = 1.25 to 1.399# --> 10% off
	x = 1.40 to 1.799# --> standard rate
	x = 1.80 to 2.499# --> 10% surcharge
	x = 2.50 up ---------> 25% surcharge

and so on.  I'd need to look at numbers, so don't take the above as the
right mix, but you get the idea.

Eddy

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