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" <jfmezei_nanog@vaxination.ca> To: Nanog@nanog.org 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.