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TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

1 edit

Usage - overages

Hey gang,

I think I've got the basics figured out for overages. I'm still working on the exact penalties for each package but I'll attempt to explain the gist of it all here.

I see a two stage penalty system.

The first stage is where you go over your monthly cap by only a small amount.. say less than 25%.

In this situation we would look at this months usage and the average between this month and the previous month. Take the lesser of the two. If that number is higher than your cap. We assess you with a small penalty. i.e. smaller than the difference between the price of your existing package and the next tier up.

The second stage is where you go over your monthly cap but by more than 25%.

In this situation you will get a penalty, either the small penalty or a large one. Again, we would take the lesser of the current month and the average of the current and the last. If that number is below the 25% of your cap, you get the small penalty. If it's above you would get a large penalty that would be more than what the next usage tier would be.

edit: for speeds where there are 3 usage tiers, it may require a third penalty.

That's where my head is currently at with this. I'm trying to minimize potential gaming of the system and at the same time make it all more lenient for overages in general. In this system you would know where you stand at all times and we would look to implement real time notices when you're approaching your cap.

I think this would work fairly well but I'd like to hear some feedback before I go too far with it.. in case I'm not seeing some major problem with it. (other than it's a bit more complicated)
--
Marc - CEO/TekSavvy



TSI Martin
Premium
join:2006-02-23
Chatham, ON
kudos:33

1 edit

I'm also interested in understanding all of this...
Can you let me know if I'm far off? I'll edit post if necessary.

Based on example of price for DSL25/10,
75 Gigs - $47.99
300 Gigs - $51.99
Unlimited - $69.99

less then 25%
Month 1 = 195GB
Month 2 = 300GB
Average of 247.5
No charge or change in plan.

More then 300GB less then 25%
Month 2 : 300GB
Month 3 : 400GB
Rolling average : 350GB

50GB over 300GB @ say $0.25/GB = $12.50
Instead of paying $12.50 in overage you would look at charging for example $5.00
$51.99 + $5 = $56.99

more then 300GB more then 25%
Month 3 : 400GB
Month 4 : 4350GB
Rolling average : 75GB
75GB over 300GB @ say $0.25/GB = $18.75
So on 300GB rather then paying $51.99 + $18.75 = $70.74
Instead of paying $70.74, you'd be automatically upgraded to unlimited plan @ $69.99

Does this make sense?

Martin
--
TSI Martin (Escalations / E-Services) - TekSavvy Solutions Inc.
Authorized TSI employee ( »»TekSavvy FAQ »Official support in the forum )
Follow us on Twitter : @TekSavvyCSR ; @TekSavvyNetwork



QuantumPimp

join:2012-02-19
Reviews:
·voip.ms

1 edit
reply to TSI Marc

You're putting a lot of care and effort into this Marc. As a customer I thank you a bunch.

I always assume that the cap is actually less than the one stated otherwise there is a risk of constantly going over ... even by just a little bit. It's particularly tricky to manage on the final day of the period because there's no correction one can make other than possibly paying a penaly.

The hysterisis you've added helps that situation by allowing the previous month to be used as a bank. Still, there is no easy way to get exactly the cap month-by-month without possibly triggering a penalty. The net effect is that the more customers stay below the cap the better the insurance against activating a penalty.

Personally, I am OK with this scenario.



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to TSI Martin

You seem to have the basic gist of it. although you've got some funky numbers in there.

the idea is to be forgiving if you use near the cap. but there should be an incentive to be in the right cap category for your usage.
--
Marc - CEO/TekSavvy


Eug

join:2007-04-14
Canada
reply to TSI Marc

Isn't this similar to what you did before, but found it confused people? Cuz this setup is even more confusing.

I understand that it's better for us though.
--
Everything Apple



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to TSI Martin

I fixed your examples:

Based on example of price for DSL25/10 with 300gig plan.
small penalty = $5 (as an example)
large penalty = $25 (as an example)
with threshold set at 25% (as an example)

300 Gigs - $51.99
Unlimited - $69.99

less then 25% (or less than 375gig)
Month 1 = 195GB
Month 2 = 325GB
Average of 260GB
No charge or change in plan. You went over but because the average is lower than 300 there's no penalty. If Month 1 would have say 500gig used. We would use the month 2 since it's lower. In that case you would get a small penalty of $5 flat.

More then 300GB less then 25%
Month 2 : 325GB
Month 3 : 400GB
Rolling average : 362.5GB
Pay small penalty of $5. Because average is lower than 375.

62.5GB over 300GB @ say $0.25/GB = $15.60
Instead of paying $15.60 in overage you would look at charging for example $5.00
$51.99 + $5 = $56.99

more then 300GB more then 25%
Month 3 : 400GB
Month 4 : 435GB
Rolling average : 417.5GB
117.5GB over 300GB @ say $0.25/GB = $29.4
So on 300GB rather then paying $51.99 + $29.4 = $81.37 you would pay the large penalty of $25 or $51.99 + $25=$76.99.
--
Marc - CEO/TekSavvy



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to Eug

said by Eug:

Isn't this similar to what you did before, but found it confused people? Cuz this setup is even more confusing.

I understand that it's better for us though.

We stopped it because the CRTC changed the costs AFAIK
--
Marc - CEO/TekSavvy


TSI Martin
Premium
join:2006-02-23
Chatham, ON
kudos:33
reply to TSI Marc

said by TSI Marc:

So on 300GB rather then paying $51.99 + $29.4 = $81.37 you would pay the large penalty of $25 or $51.99 + $25=$76.99.

So you would then be provided the option of either paying the 25$ or switching to unlimited after 25$ payment is made? If the switch to unlimited is done, how long before you can switch back to 300GB?
--
TSI Martin (Escalations / E-Services) - TekSavvy Solutions Inc.
Authorized TSI employee ( »»TekSavvy FAQ »Official support in the forum )
Follow us on Twitter : @TekSavvyCSR ; @TekSavvyNetwork


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by TSI Martin:

said by TSI Marc:

So on 300GB rather then paying $51.99 + $29.4 = $81.37 you would pay the large penalty of $25 or $51.99 + $25=$76.99.

So you would then be provided the option of either paying the 25$ or switching to unlimited after 25$ payment is made? If the switch to unlimited is done, how long before you can switch back to 300GB?

I'm not sure that we give the option to upgrade. if we give warnings and all.. with two month rolling average.. it's already very forgiving... by giving the option to upgrade.. that seems to me to break the system. this way we dont really care about things like how long before they can switch back...
--
Marc - CEO/TekSavvy


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to Eug

said by Eug:

Isn't this similar to what you did before, but found it confused people? Cuz this setup is even more confusing.

I understand that it's better for us though.

it is more complicated there's no doubt though. all the numbers and penalties would be spelled out and would be displayed ahead of time.. so it would be a bit like a grid.. that should help significantly to reduce the complicated bits..
--
Marc - CEO/TekSavvy


elitefx

join:2011-02-14
London, ON
kudos:2

Why not automatically bill overages/penalties in blocks:

0-50GB=$10
50-100GB=$20
100GB plus=$???fixed amount

Keeps it simple and effective.



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by elitefx:

Why not sell overages/penalties in blocks:

0-50GB=$10
50-100GB=$20
100GB plus=$???fixed amount

Keeps it simple and effective.

could..

means there wouldn't be a max. I'm not keen on that.

also means that some plans wont make sense and could lead to gaming the basic rates.

also means we forever have to managed these blocks.
--
Marc - CEO/TekSavvy


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to elitefx

said by elitefx:

Why not automatically bill overages/penalties in blocks:

0-50GB=$10
50-100GB=$20
100GB plus=$???fixed amount

Keeps it simple and effective.

to a degree.. it's a variant of that really.
--
Marc - CEO/TekSavvy


Montreal DSL

join:2011-02-02
Montreal-DSL
reply to TSI Marc

Marc, it has to be simple to explain ... I understand the need to be fair BUT it has to be explained in 20 seconds max

More han that, you loose customer attention and interest



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by Montreal DSL:

Marc, it has to be simple to explain ... I understand the need to be fair BUT it has to be explained in 20 seconds max

More han that, you loose customer attention and interest

it's ironic.. but there's no way to do that without, in my opinion, being punitive.
--
Marc - CEO/TekSavvy

InvalidError

join:2008-02-03
kudos:5
reply to TSI Marc

I would make it simpler:
1- bill based on the least of rolling average and current month
2- cap overage to difference-to-unlimited + $20

If the difference between 75GB cap and unlimited on a given tier is $30, overage would be capped to $50.

This way, no need for one set of rule for 75GB-300GB, 300GB-Unlimited and whatever else fragmentation or tier shuffle may be added at some other time.



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by InvalidError:

I would make it simpler:
1- bill based on the least of rolling average and current month
2- cap overage to difference-to-unlimited + $20

If the difference between 75GB cap and unlimited on a given tier is $30, overage would be capped to $50.

This way, no need for one set of rule for 75GB-300GB, 300GB-Unlimited and whatever else fragmentation or tier shuffle may be added at some other time.

that's basically what I'm saying.. i like you're way of saying it..

but the net result is that you too still end up with a grid of different penalties for different speeds
--
Marc - CEO/TekSavvy


Montreal DSL

join:2011-02-02
Montreal-DSL
Reviews:
·TekSavvy Cable
reply to TSI Marc

I know, it is not easy at all!

Can you try a max for the lower speeds (5M-7M), let's say $20, one max for the medium speeds (10M-30M), let's say $35 and one max for the higher speeds (35M-50M), let's say $50...

Of course that max needs to be adjusted to address the max amount you have for the unlimited option for these speeds.

Very difficult to happily marry all the constraints



Montreal DSL

join:2011-02-02
Montreal-DSL
reply to TSI Marc

I also like the InvalidError's idea



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to Montreal DSL

said by Montreal DSL:

I know, it is not easy at all!

Can you try a max for the lower speeds (5M-7M), let's say $20, one max for the medium speeds (10M-30M), let's say $35 and one max for the higher speeds (35M-50M), let's say $50...

Of course that max needs to be adjusted to address the max amount you have for the unlimited option for these speeds.

Very difficult to happily marry all the constraints

yeah.. you know.. basically we'd have it all listed.. here's your cap. go over by this much.. it's X.. by that much.. it's Y...

when it's all listed.. it's all there in plain view.. right now it's all math but once somebody does the math.. it becomes pretty straight forward... if somebody asks.. just point them to the doc that has it all figured out... and we would send notices and display the status in our customer portal...
--
Marc - CEO/TekSavvy


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to Montreal DSL

said by Montreal DSL:

I also like the InvalidError's idea

my main concern there is gaming...

one month you peg the connection. next.. you go easy.. forever playing with it..

if you go too far over.. there has to be a penalty imho
--
Marc - CEO/TekSavvy

bjlockie

join:2007-12-16
Ottawa, DSL
reply to TSI Marc

What percent of customers pay overages?

Will the 2 month rolling average still be there?


InvalidError

join:2008-02-03
kudos:5
reply to TSI Marc

said by TSI Marc:

but the net result is that you too still end up with a grid of different penalties for different speeds

Maybe you do, maybe you don't.

You can simply say: your capped internet bill will never exceed the price of our equivalent unlimited tier + $20.

If a given speed has unlimited at $70, the max capped bill regardless of what the base cap is will be $90 total before taxes, end of story.


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by InvalidError:

said by TSI Marc:

but the net result is that you too still end up with a grid of different penalties for different speeds

Maybe you do, maybe you don't.

You can simply say: your capped internet bill will never exceed the price of our equivalent unlimited tier + $20.

If a given speed has unlimited at $70, the max capped bill regardless of what the base cap is will be $90 total before taxes, end of story.

and basically.. if they want more details.. go see this thread to see exactly how we calculate it... ?

that's not a bad idea.
--
Marc - CEO/TekSavvy


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28

said by TSI Marc:

said by InvalidError:

said by TSI Marc:

but the net result is that you too still end up with a grid of different penalties for different speeds

Maybe you do, maybe you don't.

You can simply say: your capped internet bill will never exceed the price of our equivalent unlimited tier + $20.

If a given speed has unlimited at $70, the max capped bill regardless of what the base cap is will be $90 total before taxes, end of story.

and basically.. if they want more details.. go see this thread to see exactly how we calculate it... ?

that's not a bad idea.

another good one liner is: it's always cheaper to choose the right base usage plan than it is to pay overages.
--
Marc - CEO/TekSavvy


Davesnothere
No-BHELL-ity DOES have its Advantages
Premium
join:2009-06-15
START Today!
kudos:7

1 edit
reply to InvalidError

said by InvalidError:

said by TSI Marc:

but the net result is that you too still end up with a grid of different penalties for different speeds

 
Maybe you do, maybe you don't.

You can simply say: your capped internet bill will never exceed the price of our equivalent unlimited tier + $20.

If a given speed has unlimited at $70, the max capped bill regardless of what the base cap is will be $90 total before taxes, end of story.

 
I like your simpler approach too, but why does the max bill need to be higher than unlimited for that speed/tier ? - Admin costs ?

Simpler IS better, and to simplify further, at the risk of being flamed, I suggest no more rolling averages.

And max penalty per month would be whatever it takes to bring the bill retroactively for the month in question to what unlimited would have been for that speed/tier.

How you GET to the max (how many $$ per GB, etc), I'm not sure, but max bill should not exceed posted unlimited for that speed/tier, IMNSHO.


sbrook
Premium,Mod
join:2001-12-14
Ottawa
kudos:13
Reviews:
·TekSavvy Cable
·WIND Mobile
reply to TSI Marc

Why not do something like this ...

Less than 375 ...
1 month over in a 6 month period free else $3
2 consecutive months over $5.00
3 consecutive months over $10.00

Over 375
1 month over $10
2 consecutive months (by any amount) current month more than 375 $20
3 consecutive months (by any amount) current month more than 375 $25

In other words, if you are light overages, then your costs are minimal. For repeated overages, you contribute to the costs to the point where over 25% regularly you should consider the unlimited tier.



TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to Davesnothere

said by Davesnothere:

Simpler IS better

I totally agree.. I really dont want to make it complicated but.. you know, I dont agree with any other method. it's all way more expensive for the end user.
--
Marc - CEO/TekSavvy


TSI Marc
Premium,VIP
join:2006-06-23
Chatham, ON
kudos:28
reply to sbrook

yeah I looked at that too. that kinda ends up more complicated still
--
Marc - CEO/TekSavvy


geokilla

join:2010-10-04
North York, ON
Reviews:
·TekSavvy Cable
reply to elitefx

said by elitefx:

Why not automatically bill overages/penalties in blocks:

0-50GB=$10
50-100GB=$20
100GB plus=$???fixed amount

Keeps it simple and effective.

This. What you are currently trying to implement right now Marc is confusing as hell and makes no sense even after going through the thread, trying to understand your explanations.

Or make it simple. 300GB and less per month, you're billed for 300GB plan. If you go over 300GB, you're automatically billed for the difference between Unlimited and 300GB usage.