Inevitable death, was Re: Verizon Public Policy on Netflix

Matt Palmer mpalmer at
Tue Jul 15 06:24:03 UTC 2014

On Mon, Jul 14, 2014 at 10:05:21PM -0600, Brett Glass wrote:
> At 09:40 PM 7/14/2014, John Curran wrote:
> >Myself, I'd call such fees to be uniform, 
> Ah, but they are not. Smaller providers pay more per IP address than larger ones. And a much
> larger share of their revenues as the base fee for being "in the club" to start with.

While the "share of revenue" argument is bogus (as John's cup-of-coffee
analogy made clear), you do have a point with the cost-per-IP-address

Annual Fee   Max CIDR    $/IP
$500         /22         0.49
$1000        /20         0.24
$2000        /18         0.12
$4000        /16         0.06
$8000        /14         0.03
$16000       /12         0.02
$32000       > /12       Mastercard!

Then again, the vast majority of businesses have discounts for volume
purchases.  I note that even LARIAT does this.  You charge $60 for
1000Kbps, but $80 for 1500Kbps.  Shouldn't that be $90 for 1500Kbps, to
ensure everyone pays the same price per Kbps?

> It would be nice if what I do was also understood and valued by the
> Internet community at large.

I don't think human beings in general are wired that way.

- Matt

Politics and religion are just like software and hardware. They all suck,
the documentation is provably incorrect, and all the vendors tell lies.
		-- Andrew Dalgleish, in the Monastery

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