In message <alpine.deb.2.02.1407140734410.7...@uplift.swm.pp.se>, Mikael Abraha msson writes: > On Sun, 13 Jul 2014, Brett Glass wrote: > > > My customers do not want me to "creatively" find ways to extract > > additional money from them so as to cover expenses that Netflix should > > be covering. Nor do they want me to subsidize Netflix subscribers from > > the fees from non-Netflix subscribers. They want to pay a fair price for > > their Internet that does not include paying ransom to third parties. > > The Netflix users either have to pay to you, or they have to pay to > Netflix. Now, if you're paying $20 per megabit/s/month then you and your > users are victims of lack of competition in your area. > > In properly developed places in the world with working competition, > bandwidth prices are around $0.5-5/megabit/s/month. With those levels, you > would have much less problem covering the cost of transit and your > customers could use the service as much as they want because on margin, > producing more bandwidth doesn't cost too much. At $20, I can understand > that you're hurting. However, you paying $20 isn't Netflix problem. I > don't see how Netflix could be re-imbursing you for your bandwidth costs, > because it's not their fault either. > > So, the real problem you should spend your energy on is why are you paying > so much for bandwidth, not going after Netflix. > > Since this is probably not something you can fix short term, I see no > other option than to externalise your high margin cost to customers by > imposing a monthly cap on usage and charging more for the people using the > service more. You need to make sure your reveue model matches your > expenditure model.
And in some parts of the world bandwidth caps are the norm even for terrestial lines. My DOCIS home line has a 120G (down + up on this plan) limit then it is rate limited for the rest of the month. I don't hit the 120G limit though I regularly go over 60G. If I need more bandwidth I would go up to the next tier. This gives me a fixed price as well as well defined service expectations. > -- > Mikael Abrahamsson email: swm...@swm.pp.se -- Mark Andrews, ISC 1 Seymour St., Dundas Valley, NSW 2117, Australia PHONE: +61 2 9871 4742 INTERNET: ma...@isc.org
