On Sun, 3 Jun 2001, Alex Rubenstein wrote:
$1 per gigabyte is equivalent to $316/Mbit fairly averaged.
Yes, but:
Let's assume that someone sells at $1/gig, then is billed $316/mb/s/mon by thier provider. Let's further assume that the customer who is buying at $1/gig is averaging 1 mb/s, but has perfect sine-wave bandwidth usage, ie, 0 kb/s at midnight, 1 mb/s at 6a, 2 mb/s and noon, 1 mb/s at 6p, and 0 mb/s again at midnight. (Agreeing that a perfect sine wave of usage is mostly unlikely, but it's a reasonable assumption that said customer won't be at the average all month). Problem: Provider is billed for 2 mb/s.
If you can't get enough extra customers based on your better pricing, don't lower your price (or sell it for $2/gig). -- Richard A Steenbergen <ras@e-gerbil.net> http://www.e-gerbil.net/ras PGP Key ID: 0x138EA177 (67 29 D7 BC E8 18 3E DA B2 46 B3 D8 14 36 FE B6)