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<TITLE>RE: An Attempt at Economically Rational Pricing: Time Warner Trial</TITLE>
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<P><FONT SIZE=2>In the Brave New World, the gap between the average user and the user whose peak demand determines upstream capacity needs, has widened.<BR>
<BR>
So the access providers will find that their infrastructure needs upgrading. In particular, the backhaul will need constant upgrading. And of course, more peering. :)<BR>
<BR>
More 10 gig waves across the Atlantic! Hahooh!<BR>
<BR>
Roderick S. Beck<BR>
Director of European Sales<BR>
Hibernia Atlantic<BR>
1, Passage du Chantier, 75012 Paris<BR>
<A HREF="http://www.hiberniaatlantic.com">http://www.hiberniaatlantic.com</A><BR>
Wireless: 1-212-444-8829.<BR>
Landline: 33-1-4346-3209.<BR>
French Wireless: 33-6-14-33-48-97.<BR>
AOL Messenger: GlobalBandwidth<BR>
rod.beck@hiberniaatlantic.com<BR>
rodbeck@erols.com<BR>
``Unthinking respect for authority is the greatest enemy of truth.'' Albert Einstein.<BR>
<BR>
<BR>
<BR>
-----Original Message-----<BR>
From: owner-nanog@merit.edu on behalf of Alex Rubenstein<BR>
Sent: Sun 1/20/2008 8:02 PM<BR>
To: Taran Rampersad; nanog@merit.edu<BR>
Subject: RE: An Attempt at Economically Rational Pricing: Time Warner Trial<BR>
<BR>
<BR>
> > As long as the companies convince people that the "cap" is large<BR>
> > enough to be essentially the same as unmetered then most people<BR>
won't<BR>
> > care and will take the savings. <BR>
<BR>
I don't agree.<BR>
<BR>
When we sold boatloads of dialup in the mid to late 90's, people did not<BR>
like caps, no matter how high they were. We sold a product early on for<BR>
$20/month which gave you 240 hours/month -- that was an average of 8<BR>
hours/day. However, most users never used more than 20 to 30 minutes a<BR>
day -- but we often got told they were moving to other providers because<BR>
they were 'unlimited.'<BR>
<BR>
So, we adapted.<BR>
<BR>
In any event, I've been watching this thread, and I'd have to say that<BR>
going down the road of metered pricing will only cause other providers<BR>
not to do this, and then market against TW. In fact, I'd bet on it.<BR>
<BR>
Am I the only one here who thinks that the major portion of the cost of<BR>
having a customer is *not* the bandwidth they use?<BR>
<BR>
<BR>
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