[c-nsp] Billing per Mb (Large ISPs)

[Saku Ytti]

On (2014-05-24 16:44 -0500), Blake Dunlap wrote:

> For those that don't realize the underlying math: Per mb billing is
> based on average throughput for the period, 95th is billing based on
> lopped ceiling peak.

Aye. per MB is much more fair, two 95 percentile customers could be using
wildly different amount of network capacity yet pay exactly the same. I wonder
what is the history behind 95 percentile, why did we make it de-facto for IP
transit?

I'm also interested if Australia has similar content/eyeball disputes as EU
and US for those companies who do per byte billing?

Intuitively it would seem that if I'm being paid for bytes I'm delivering, I'd
want as many bytes from content networks as I can possibly get. As opposed to
if I'm not being paid, I'd like to deliver as little as possible, to avoid
eroding margins.

This is what we're seeing in EU and US, eyeball networks regularly just stop
delivering content bytes until content shops pays to them. Which creates
inefficient indirect billing as netflix et.al. then have to increase end-user
pricing to cover these traffic charges.

-- 
  ++ytti