MFS WorldCom/WilTel/LDDS

I agree with the thrust of this message (that flat rates on leased lines
will run into what economists call "adverse selection" problems, while for
dial-up there are inherent limits that make flat rates bearable).

However a minor quible/question: there is an additional problem with badly
written applications, such that they can SEND more than 28.8kb/sec even
though the receiver can't get it (the difference ends up getting thrown
away at the ISP). Thus a single 28.8 user can consume much more than that
on incoming capacity, if they watch a lot of badly written real time video
for example. Since the user will see very poor quality in this scenario
(most packets are not being received), it does not seem likely to last
long. But EUNet reported this problem, for example. Does anyone know how
MBONE handles this issue? (Does it attempt to send all packets to every
recipient, whether or not they can get them?) Real Audio?

Roger Bohn


But I do not have to worry that a lone user running
CuSeeMe (or even SmellU/SmellMe (see
:-)) since the worst they can do is max out at 28.8kb on the T1

On the other hand, if I have a number of leased line customers
connected to that T1 POP, some are 64kb, some are 256kb and some are
T1, then my model alters since the T1 users can indeed max at the
full speed of the line and others can utilize 15% of the line as
compared to 1% for a dialup user. Yes, the statistical model shows
they will even out, some will use 1%, some 10% and others will use
80% but in the end it all evens out. But that lone wolf T1 client
can indeed saturate my line, especially if it is a garage ISP with
1000 users from the neighborhood offering flat $9.95 and having
a modem bank of 96 modems. Or a small startup with every user
doing RealAudio during the day.

Just look at the example of the NANOG poster who had to move ISPs
since his thruput was high enough to double his costs so he moved
to a flat rate ISP. Those flat rate ISPs will quickly load up with
these thruput heavy users and in the end either lose money every
year or go bankrupt.

The trend is for flat rate dialup and usage based rates for leased
line. Those ISPs that ignore that trend will not last.

rest of message omitted