Re: More Sidgemore on per-bit pricing
5 Dec
1998
5 Dec
'98
7:56 p.m.
One notable thing about per-bit pricing, as well, is that once one provider really rolls it out and pushes it at a low cost, it's bound to become a surety. Suddenly the provider with per-bit billing will be able to steal all of the low-usage customers, while leaving the expensive near-saturation customers at other providers... effectively raising their cost per DS1...
I have seen it argued several times that if the price is "low enough", customers prefer a fixed price, even if that price is slightly higher than they could get by a variable-rate pricing scheme. Why do you think per-bit pricing would be significantly different here? Steinar Haug, Nethelp consulting, sthaug@nethelp.no
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