As one of those "big guys"... We have tiers for data usage both on a Daily and a Monthly rate. For our base line customers on a $25 a month plan, it's 1.5 meg down with 1GB total per month bandwidth; 8 bucks a gig beyond that up to 5 gigs, everything beyond that is covered at a max $70 cap... Designed for VERY LOW USE users only... Grandma with email... That's about it...
Rest of the plans go $40, 50 and 60/mo for 5, 10 and 15 meg connections... 15 meg is burstable to 20 meg if bandwidth is available (usually 11 pm to 10 am local time) Speeds are max rated; if a user exceeds 2,5 GB, 4.5 GB or 11 GB for each plan respectively during the high use period (noon to midnight local time 7 days a week), we throttle them down to standard minimum speeds (2.5, 5 & 6 meg). We don't bill beyond that, just slow them down so they don't snag the rest of the network. Our "abusers" are profiled as 3 GB combined up/down bandwidth on the 5 meg plan of 5 GB on the 10 meg plan for more than 15 days out of the billing month... We chat with them and usually move them up to the next tier... For the 12 meg customers, there is no monthly bandwidth cap. So overall, it works out to about 50 GB monthly on our $40 plan and about 70 GB on our $50 plan... Anything beyond that and we discuss with the customer their options... We have a completely separate tier of business plans with much higher bandwidth quotas available at prices that meet the cost of providing the services... It's more geared to keep that 10% of customers from using their services at home for a business (against the AUP); not completely against reasonable use, we just gear the business class service with a matching SLA and bandwidth quota to meet their needs... Can't afford to give everything away... As much as customers EXPECT it, the free market gets to tell us the need, however, they're not granted the right to make demands and threats... Don't like it? Plenty of other options out there... We're the right product for about 75% of our customers... We go out of our way to avoid getting that other 25%.... Either we're too much service for their needs or way too little... One size does not fit all... On Thu, Nov 12, 2009 at 12:02 PM, RickG <[email protected]> wrote: > Chuck, > > That's the point. The consumer is NOT paying for excessive bandwidth use. > When bandwidth runs us over $100/meg and one customer uses $300's worth for > $50/month there is something wrong. The unlimited bandwidth model only > works > when you can oversubscribe the bandwidth. With bandwidth usage climbing > exponentially, the model will soon break. Furthermore, some educated > consumers are finally realizing that they are subsidizing the bandwidth > hogs. They ask how is that fair? > As far as my Netflix idea, I agree my original idea is probably not a good > solution. I was also a GM at a cable company and maybe we should use them > as > a template? HBO, and the other premium channels charge the cable cos for > the > customer's usage which we passed on to the customer for a profit. Both HBO > and the cable co makes money and everyone wins. > Really, I'm just kicking around ideas because something has to happen. I'm > not saying I have the right ideas. > As far as the phone companies, AFAIK the LECS still have an exchange rates > for calls that terminate on another network. It's just transparent to the > end users. At any rate, this discussion is much needed. > > Thanks to all on this list for their ingenuity which makes this the best > business field to be in (IMHO)! > -RickG > > On Thu, Nov 12, 2009 at 12:10 PM, Chuck Bartosch > <[email protected]>wrote: > > > > > On Nov 7, 2009, at 2:25 PM, RickG wrote: > > > > > In the past, l worked for two electric companies. Their business > > > models were > > > dependant on meters. As far as internet access, Compuserve and AOL > > > had the > > > right idea from the start. Instead entrepanuers took advantage of > > > their > > > weakness at the time. What we are now seeing is the downside of the > > > $50/month "all you can eat" business model. When usage was low due > > > to less > > > apps, it worked fine but were now seeing exponential growth of usage. > > > Besides that, one thing we (ISP's) are really missing, are agreements > > > between each other for payment of access to our networks. For > > > instance, the > > > phone companies pay each other for access to each others networks. I > > > realize > > > this is very complex but shouldnt Netflix (or their provider) pay us > > > for > > > utilziation of our networks? > > > > I do not see why they (Netflix) should, no. The consumer is already > > paying you for it. Netflix is not another ISP. It's a "phone call". My > > phone company does not charge my local hardware store for calling them > > if they are with a different phone company any more than it charges my > > mom when I call her back in Minnesota (I live in New York). My *mom's* > > phone company might charge her for the the call, depending on the > > plan, but that's about as far as it goes. > > > > The provider idea could bite us hard. > > > > Note that originally the settlement fees were demanded by the > > established phone companies to mild the upstart cell companies for > > revenues. They weren't smart when they started those agreements and it > > came back to bite them later when CLECs exploited the ideas in novel > > ways with the advent of the Internet where you could guarantee certain > > incoming-only calls. But they aren't going to be so stupid as to not > > think of those loop holes a second time ;-). > > > > Chuck > > > > > -RickG > > > > > > On Sat, Nov 7, 2009 at 1:59 PM, Eric Rogers > > > <[email protected]>wrote: > > > > > >> I do agree with you and that works if there are other options. One > > >> customer who was downloading 160G, came from DSL and moved into this > > >> neighborhood and now wants high speed where we are the only > > >> option. It > > >> is only a matter of time before others are using Netflix and others. > > >> They come in all gaming consoles now. Why not have the customers pay > > >> for upgrades? If there is a high demand for services, the demand > > >> drives > > >> growth; or fees stifle demand. > > >> > > >> Maybe my logic is flawed, but if 5% of the customer base is straining > > >> the network, shouldn't they pay more? > > >> > > >> Eric > > >> > > >> -----Original Message----- > > >> From: [email protected] [mailto:wireless- > > >> [email protected]] On > > >> Behalf Of Travis Johnson > > >> Sent: Saturday, November 07, 2009 12:22 PM > > >> To: WISPA General List > > >> Subject: Re: [WISPA] Metered Billing > > >> > > >> 10% of your customers will use 90% of your resources. Direct that 10% > > >> customer base to cable or DSL and stop worrying about adding > > >> complexity > > >> to your network. > > >> > > >> Travis > > >> Microserv > > >> > > >> Chuck Profito wrote: > > >>> Marlon does this and smiles every time he signs a Bandwidth Hog! > > >>> > > >>> -----Original Message----- > > >>> From: [email protected] [mailto:[email protected]] > > >> On > > >>> Behalf Of Eric Rogers > > >>> Sent: Saturday, November 07, 2009 4:56 AM > > >>> To: WISPA General List > > >>> Subject: [WISPA] Metered Billing > > >>> > > >>> We are on the verge of changing to a metered or tiered billing > > >> structure > > >>> with Caps that once they exceed the cap; it doesn't shut off, but > > >>> they > > >>> get charged the overage. Netflix is getting out of control and I > > >> don't > > >>> want to punish the customers that only use it occasionally. I think > > >>> they are very innovative solutions and don't want to hinder new > > >>> applications. I just want people that download 160 GB in a month, > > >> when > > >>> the average is nearly 10 GB a month, to pay their share for > > >>> expanding > > >>> the network. > > >>> > > >>> > > >>> > > >>> Who has dabbled in the metered/tiered services and what were your > > >>> customers responses? > > >>> > > >>> What are your tiers? > > >>> > > >>> Have attitudes changed toward your company as being greedy? > > >>> > > >>> > > >>> > > >>> We already have everything in place to do it, just need to send out > > >> the > > >>> letter saying we are doing it and why. > > >>> > > >>> > > >>> > > >>> Eric Rogers > > >>> > > >>> Precision Data Solutions, LLC > > >>> > > >>> (317) 831-3000 x200 > > >>> > > >>> > > >>> > > >>> > > >> > ------------------------------------------------------------------------ > > >> ---- > > >>> ---- > > >>> WISPA Wants You! Join today! > > >>> http://signup.wispa.org/ > > >>> > > >> > ------------------------------------------------------------------------ > > >> ---- > > >>> ---- > > >>> > > >>> WISPA Wireless List: [email protected] > > >>> > > >>> Subscribe/Unsubscribe: > > >>> http://lists.wispa.org/mailman/listinfo/wireless > > >>> > > >>> Archives: http://lists.wispa.org/pipermail/wireless/ > > >>> > > >>> > > >>> > > >>> > > >> > ------------------------------------------------------------------------ > > >> -------- > > >>> WISPA Wants You! 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Join today! > > >> http://signup.wispa.org/ > > >> > ------------------------------------------------------------------------ > > >> -------- > > >> > > >> WISPA Wireless List: [email protected] > > >> > > >> Subscribe/Unsubscribe: > > >> http://lists.wispa.org/mailman/listinfo/wireless > > >> > > >> Archives: http://lists.wispa.org/pipermail/wireless/ > > >> > > >> > > >> > > >> > > > -------------------------------------------------------------------------------- > > >> WISPA Wants You! Join today! > > >> http://signup.wispa.org/ > > >> > > >> > > > -------------------------------------------------------------------------------- > > >> > > >> WISPA Wireless List: [email protected] > > >> > > >> Subscribe/Unsubscribe: > > >> http://lists.wispa.org/mailman/listinfo/wireless > > >> > > >> Archives: http://lists.wispa.org/pipermail/wireless/ > > >> > > > > > > > > > > > > -------------------------------------------------------------------------------- > > > WISPA Wants You! 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