Thats one way to utilize bandwidth shaping but how do you " guaranteed
minimum of 1.5Mbps, 4Mbps and
6Mbps" at those low rates to every use and make money? Maybe I'm wrong but
the problem I see is that you will end up having unhappy subscribers when
their expectations are not met. Thats where the premium rates can come in. I
find people all the time who would pay more for committed speeds if it can
be delivered.

BTW: Cricket Communications, subsidiary of Leap Wireless has lost money
since its inception and continues to do so. Give me an example of an
non-subsidized "all you can eat service" company in a competitive market
that actually makes money (bottom line).


On Sat, Nov 7, 2009 at 4:55 PM, Jayson Baker <[email protected]> wrote:

> Ya know, we've looked at this many times over the past couple years, and
> even tested it for a bit.
>
> Fact is, people like unlimited, and not having to guess.  I, myself, being
> a
> fairly lite user of the Internet, would still always opt for an unlimited
> plan--even if I knew my bill may be lower on a pay-per-use plan.  I have
> unlimited cell phone minutes, txt messages, etc.  If I could pay for
> unlimited utilites, I'd certainly do that too!
>
> We've got the infrastructure in place for a pay-per-use, and could activate
> it at anytime.  We tried selling it about a year ago, and people just
> didn't
> understand the concept.  People aren't used to it--most people got online
> when Internet was $19.95/mo for dialup (or, $22.95 for AOL!), and don't
> remember the 10 for $10 dial-up packages.  Nobody knows what ISDN with 300
> hours is.
>
> We currently offer 12Mbps service for $24.95/mo.  This makes us the fastest
> in the area, and the cheapest.  We have local sales, support and
> installations.  We decided the way to win is to shape traffic--we offer
> three 12Mbps packages; one with a guaranteed minimum of 1.5Mbps, 4Mbps and
> 6Mbps.  If you do nothing than browse, share pictures, etc. (i.e. "normal
> use") you'll always see the 12Mbps.  But once you fire up a torrent or
> Netflix, you only get that speed for 10 minutes--after that, you get your
> guaranteed minimum.  Prices double from 1.5 to 4, and double again going to
> 6Mbps.  We have never had a complaint about speed or price with this
> structure.
>
> I'm hoping that the "big guys" do go to pay-per-use plans.  Just one more
> way we can advertise and win against them.  "Tired of counting your bits
> and
> bytes?  We're unlimited"  Look at Cricket wireless--they've just exploded
> with customers on their unlimited-everything service.
>
> Just my 2 cents
>
> Jayson
>
> On Sat, Nov 7, 2009 at 2:24 PM, Travis Johnson <[email protected]> wrote:
>
> >  The cellular guys don't charge by the minute... I have an unlimited plan
> > on my cell phone. I can also get unlimited text and internet access for
> > $9.95/mo extra.
> >
> > People don't want to guess what their internet bills are going to be from
> > month to month. Would you want that at your own home?
> >
> > Travis
> > Microserv
> >
> >
> > Gary Garrett wrote:
> >
> > You sound like the cell phone company.
> > I am convinced the big failure in my business model is I charge by the
> > month while the cellular guys charge by the minute.
> >
> >
> > Travis Johnson wrote:
> >
> >
> >  Hi,
> >
> > You are talking about having to add additional resources (radius, etc.)
> > to track it. Then you have to bill it. Then you get to deal with the
> > phone calls from users that say "My computer wasn't even turned on
> > during those times. Remove the charge or I will go elsewhere."  So, even
> > that one extra phone call costs you money (because you have to think
> > about scaling). Imagine if you have 100x the number of customers you
> > have now... does the same solution work? Probably not.
> >
> > The easier solution would be to call that customer and get them to
> > upgrade to the next plan up (which would provide higher speed as well).
> > This works very well for us... and then I have that guaranteed extra
> > income each month, even if they don't use it.
> >
> >
> >
>  
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