This is even more of a difficult equation, because as ISPs, WE typically 
are not billed by the GB from OUR upstream providers.  We are billed, 
generally-speaking, by one of two mechanisms:

1. Pipe speed... You pay for 50mbps and that's what you get.  It doesn't 
matter if you only use 20, and if you hit 50 then the network bogs down. 
But a FIXED bandwidth cost, no danger of going over.

2. High water mark...Commit amount and burst over...usually billed at 
95th percentile... In this case you can go at whatever speeds your 
transports and upstream will allow, and you are billed based on a high 
water mark for usage.  In this case, there is a danger that you will be 
billed more by YOUR ISP but your network won't be congested at the 
upstream point.  Here, from purely an upstream bandwidth cost 
perspective, it ONLY matters what people are doing at PEAK times.

Our upstream agreement is a #2. (I know that makes a pun but we'll just 
flush that one right now)...  The mechanism we have in place only deals 
with total monthly GB transferred, not peak time usage, so by placing in 
a monthly total GB limitation, we are not being very accurate to cost, 
but we ARE trying to have our customer be aware that they are bandwidth 
hogs and they need to pay or change or leave.  It's at least a step in 
the right direction.



On 5/2/2011 2:59 PM, Sam Tetherow wrote:
> Haven't run the numbers, but it doesn't look like this number is taking
> into consideration staff cost, other overhead such administrative cost,
> insurance, non-wireless gear and most importantly a reasonable profit
> margin.
>
> Looking at it from the other direction,  I currently spend about 20% of
> opex on bandwidth.  Granted an user increasing bandwidth doesn't cost me
> more in administrative (once we account for UBB), insurance and other
> non-transport costs, but you do have to remember there is a significant
> cost to running the network outside of gear and bandwidth so if you
> figure out the cost per GB to deliver to the customer and all of a
> sudden the majority start nearing their cap consistently it will be
> eating into your paycheck.
>
> On 5/2/11 4:48 PM, Matt wrote:
>>>> What is cost per megabit from your upstream?
>> Divide your cost per megabit by 120 to get a good idea of your cost
>> per gigabit at the NOC.  If your paying $20 per megabit you would be
>> at 0.17$ per GByte.
>>
>> Figuring your cost on the wireless network is nearly impossible.  I am
>> considering:
>>
>> Total cost of AP and BH wireless gear at site and used to feed site.
>> Divided by 24 months.  Add any rental.  Divided by your total max
>> available bandwidth.  Divided by 2.  Gives cost Mbps.
>>
>> A site could be six canopy 2.4 AP's and a CMM.  Total max available
>> bandwidth would be 60Mbps.  Guessing prices.  Bandwidth is 20$ Mbps.
>> Price per GByte is 0.18$  I think that's too low but I did not
>> figure/guess any BH gear cost.
>>
>>
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