>>>>But if this happens over a period where there have been improvements in >>>>equipment/efficiency, then one would think the increase in costs would be >>>>less than 20%.
The above hypothesis why imply that the 20% linear increase is not fair, vs directly making the case that the base rate, set in some point in the past is not fair/appropriate anymore ? Faisal Imtiaz Snappy Internet & Telecom ----- Original Message ----- > From: "Jean-Francois Mezei" <[email protected]> > To: [email protected] > Sent: Wednesday, May 27, 2015 5:36:23 PM > Subject: Capacity/transit costs vs growth > > > I am looking for some rough estimates of the ratio of capacity > (equipment) pricing declines versus average increase in end user capacity. > > For instance, say end user average capcity usage increases 50% over 3 > years, would the ISP's costs also increase by 50% ? Or would increased > efficency of equipment result in a 50% decrease in capacity costs > yielding roughly the same total cost to the service provider ? > > So I am looking are some sort of ratio of gross costs > increases/decreases relative to end user usage increase in usage over time. > > > > > Context: > > Wholesale services in Canada are priced linearly and there is a process > trying to convince the CRTC to review them ASAP. So if average use > grows from 1mbps during peak to 1.2mbps, we are looking at 20% increase > in costs in a linear pricing scheme. But if this happens over a period > where there have been improvements in equipment/efficiency, then one > would think the increase in costs would be less than 20%. > > So I am looking for any and all information that can help convince the > regulator that current linear increase is not right and needs a review. > > any help appreciated. >
