|reply to rradina |
Re: Laymans terms
There's no perfect analogy, but you do bring up some good points. If implemented they way you suggest it could end up being something like this:
User1. 1TB monthly bandwidth use
Billed 15 dollars
User2. 10GB monthly bandwidth use
Billed 10 dollars
This would be a case where user 1 and 2 both had roughly the same amount of peak consumption, and user 1 had tons of additional consumption at a time with a much lower rate.
On a personal level, I think it's fair. But you'd have a hard time convincing the clueless general public that it is.
This discrepancy kind of happens in almost every LOB. Buying more usually lowers unit costs. I could even argue that those that trade in futures (grain, fuel, etc.), are trying to adjust the "time dimension" of their use to lower their cost which isn't that far removed from time-sensitive UBB.
Now before I get slammed, I don't agree that the economics of an ISP are in any remote way similar to the economics of other lines of business that lower costs through volume or futures purchasing. I'm just recognizing existing examples of lower costs for more vs. higher costs for less.