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Re: Transaction Based Settlements Encourage Waste (was Re: BBN/GTEI) (fwd)
- From: Terence C. Giufre-Sweetser
- Date: Wed Aug 26 11:33:24 1998
> Already being looked into and implemented.
> Adrian, finding it mildly entertaining that AU is screaming for a more US-like
> internet setup, and how the US seem to be after what AU have already been and
The #2 problem is the data pipe price we pay here in the land of .AU
The #1 problem is the telco's are fixated on selling what's in the pipes
and not the "promise to fill them up on demand."
What's a typical same exch T1? US$150 per month? In .AU, same exch E1 is
AUD1290 per month, or US$725/month. That's a factor 4.8, and data
"consumption" gets worse. 19c/Meg for data, when the US transit is costing
<1c/Meg. A factor of 20? Yeah...
The funny thing is, Telstra (previously a monoploy carrier/clec,) sold IP
transit on a fixed price pipe. Then discarded the model, for the pay per
byte model. Many ISP's found their transit bills tripled overnight, and some
"wholesalers" went through two or three price changes upwards of 200% per
change. What did Telstra do then?
They ran their network really lean, allowed oversubscription of 300% in
some locations, but hey, you only pay for the bytes right? So, the
internet product is running low on profit, pump up the network a little
and watch everyone's bills go up...
So, how many NSP/ISP's in North America would write MCI a blank check at
the end of the month and not know if they're getting every piece of
bandwidth they require?
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