I am looking at an order for a well known upstream provider. They are
handing me a circuit at a data center. The contract reads if we use more
than 50% of the outbound the price gets re-priced and almost doubles. How
many folks have ran into this?
Justin
It is un-usual but not un-believable or ridiculous.
There are some context questions you will have to ask / answer ...
1) Are you getting 'A Deal' (or a 'steal of a deal' ?)
2) Looks like your upstream has some constraints that they are protecting themselves from.
It will help in understanding what that constraint is.
3) What kind of circuit is this ? IP Transit ? or some other flavor of connectivity.
4) Is this condition real or left over some other template contract they copied from ?
Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, FL 33155
Tel: 305 663 5518 x 232
Help-desk: (305)663-5518 Option 2 or Email: Support@Snappytelecom.net
The times I have seen this type of language they are usually aimed at residential type service where they are trying to prevent you from hosting content. This is not necessarily unfair depending on the pricing because most residential cost models include a lot of assumptions that the circuit will be idle most of the time. A business class model that punishes you over 50% is pretty aggregious if they are charging business class prices.
The key language is 50% OUTBOUND. That implies that they don’t care how much you have inbound. That model allows a web surfer download all he wants up to circuit capacity but makes it painful for you to host
Content that you are serving.
Are you sure this circuit is correct for server hosting (I'm assuming that’s what you would be doing in a datacenter)? This contract sounds more residential user to me. If this unnamed provider is a cable provider, you need to make sure you are looking at "business class" service if you are hosting anything significant.
Steven Naslund
Chicago IL
We have contracts with two different well known Tier 1/2 providers that
state that the the ratio of inbound to outbound traffic must stay above
2:1 or a price increase will be triggered. In one case that price
increase is about 40%. In our case the ratio is closer to 20:1 so it
isn't an issue.
Steve
I am looking at an order for a well known upstream provider. They are
handing me a circuit at a data center. The contract reads if we use more
than 50% of the outbound the price gets re-priced and almost doubles. How
many folks have ran into this?
if you're buying 500Mb/s commit 95th percentile on a 1Gb/s circuit or
5Gb/s on 10 then you can expect a contract to specify an upcharge
accordingly if you bust your commit.
I generally look for terms that provide a relavitily short notification
window for uping my commit. e.g. 6 weeks or less.
But I am buying 1 Gig on a 1 Gig circuit. I could see if it were
burstable but it was being billed as 1Gig on a Gig circuit.
Justin
But I am buying 1 Gig on a 1 Gig circuit. I could see if it were
burstable but it was being billed as 1Gig on a Gig circuit.
If you're buying 1Gig commit then you're buying 1gig commit.
That's not the contract you described.