More Sidgemore on per-bit pricing

Presume the existence of a future world where many providers are
operating on a global basis and absent the current somewhat US-
centric interconnection web.

In said world, the cost of serving a given-size customer or ISP connection
which contains 90% local traffic and 10% far-distant traffic ("international")
is different than serving one which is 10% local and 90% distant traffic.

In this situation, one can either ignore the actual cost-per-destination and
charge based on an assumed traffic distribution, or one can recover based
on some extraction of the actual customer traffic profile. Note that a
based method does not have to be "per-byte"; it can be as simple as having
spliting current monthly utilization fees into local/international

The problem with the former case (assumed traffic model and price) is that
one risks too conservative a profile (with higher net price and loss of new
customers) or too aggressive a profile (with great growth potential but the
strong attraction of heavy distant-traffic customers and unrecovered costs).

This, btw, is today's model for the vast majority of ISP's; we all arrange for
some form of international connectivity and hope that these costs do not
dominate our overall infrastructure costs. Of course, this approach only
encourages distant-heavy usage applications (e.g. international IP voice/fax)
to migrate to profile-insensitive Internet services and is eventually self-


No offense to any involved in this thread, but we just had this conversation
not too long ago on this list or Could folks please just revisit the archives
or take this to an appropriate list (Ie. Com-Priv). At the very least,
please consider cutting out the text of the message you are replying to,
unless it is relevant to your response..

Much appreciated.