I believe Excessive usage should be calculated by considering the average use. Ignore the top 5% and lower 5% users, then add up all those in between and divide by the number of subs considered, and taht will give a good average. If 50G is the average, its OK if one guy does 75, if its matched by a guy that only does 25. Thats what over subscription and averaging is all about.
Then you need to calculate your total available capacity. Then you need to calculate your "total" cost to deliver that capacity. Until you have those numbers, you dont really know what you should charge for averge usage. Is average usage above or below your cost to deliver, from a per GB point of view? How much growth in average use can you tolerate, and still be profitable? I'd suggest doubleing average usage, and start charging extra per GB, once it exceeds that value of doubling average use. But even then, that misses the boat. You really need to define how many subs you want to be able to serve per sector, and then calaculate the maximum tolerable average use able to be accommodated on your technology. What ever that number is, you then need to compare it to what your current average use is. When I calculate cost, I pretend I have half the badnwdit h that I have. If its a 10mb sector, I consider it 5mb. That allows the business model to work during growth phase, understanding that you'll need to upgrade to handle demand before a network is saturated. And factoring that a network works less good when operating at peak capacity, so leaving your self some headroom. I dont actually carge people pe GB, but the math is all the same, whether the choice is to charge more when it reaches a threshold versus bandwdith limit when a threashold has been reached. Another approach is to compare it to the cost of a movie. For example, if Comcast charges $5 for a movie, and an average movie is 5GB large, then charge $1 per GB. Make it a financial deission for the customer to choose video over Internet versus Dish/Comcast, so it is strictly a decission of convenience. My point is, its not a generic answer what to charge. It reall dpends what your capacity and costs are, which can vary drastically for many reasons. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: Andy Trimmell To: WISPA General List Sent: Thursday, November 10, 2011 4:25 PM Subject: Re: [WISPA] Customer Usage If your #2 user is using 37GB then I'd call anything above 75GB excessive. Our biggest package is 60GB and then charge $1 per GB over with a maximum of a $250 monthly bill. So in theory they can have an unlimited package for $250 a month J We have a guy that consistently goes to about 120gb per month. He pays for a business package which is $100 a month and he sometimes goes over $10 a something. From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of David Hannum Sent: Thursday, November 10, 2011 8:37 AM To: WISPA General List Subject: [WISPA] Customer Usage What do you folks feel is "excessive" usage on your system? And how do you deal with it? Do you have bandwidth limits? Where do you draw the line. I have one residential sub who month after month uses more bandwidth than the next 3-4 residential subs combined. Last month, they used over 105GB. Is this excessive? The next top residential sub in the same month consumed 37GB (which in and of itself was 10GB higher than the next one). With Netflix, Hulu, Youtube, etc, this may be the new normal . . . Thoughts? Kind Regards, David Hannum New Era Broadband, LLC ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
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