On Jan 9, 2008 3:04 PM, Deepak Jain <deepak@ai.net> wrote:
However, my question is simply.. for ISPs promising broadband service. Isn't it simpler to just announce a bandwidth quota/cap that your "good" users won't hit and your bad ones will?
Deepak, No, it isn't. The bandwidth cap generally ends up being set at some multiple of the cost to service the account. Someone running at only half the cap is already a "bad" user. He's just not bad enough that you're willing to raise a ruckus about the way he's using his "unlimited" account. Let me put it to you another way: its the old 80-20 rule. You can usually select a set of users responsible for 20% of your revenue which account for 80% of your cost. If you could somehow shed only that 20% of your customer base without fouling the cost factors you'd have a slightly smaller but much healthier business. The purpose of the bandwidth cap isn't to keep usage within a reasonable cost or convince folks to upgrade their service... Its purpose is to induce the most costly users to close their account with you and go spend your competitors' money instead. 'Course, sometimes the competitor figures out a way to service those customers for less money and the departing folks each take their 20 friends with them. It's a double-edged sword which is why it rarely targets more than the hogs of the worst 1%. Regards, Bill Herrin -- William D. Herrin herrin@dirtside.com bill@herrin.us 3005 Crane Dr. Web: <http://bill.herrin.us/> Falls Church, VA 22042-3004