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[ NNSquad ] Re: L.A. Times Biz Section/Lazarus: "We can't be neutral on net neutrality"
- To: Stefano Quintarelli <firstname.lastname@example.org>
- Subject: [ NNSquad ] Re: L.A. Times Biz Section/Lazarus: "We can't be neutral on net neutrality"
- From: Vint Cerf <email@example.com>
- Date: Sun, 30 Aug 2009 16:24:12 -0400
- Cc: "'nnsquad'" <firstname.lastname@example.org>
It's quite possible to implement traffic shaping on shared capacity.
If the capacity is dedicated then the usual pricing is based on the
bit rate of the access line. Even with dedicated access lines it is
possible that the last mile infrastructure is still shared (cf common
implementations of cable access to Internet). Maybe we need to
distinguish dedicated access lines from shared access. In the former
case, it has long been the practice to price according to the bit rate
and to allow all you can eat. In the case of shared capacity, you
typically buy "up to X" (or maybe "at least X") bits/second, but if
the shared access system becomes congested, you get your pro-rata
share of the congested capacity. Pro-rata in this case means a pro-
rata share of the absolute bit carrying capacity of the shared access
link. When the system is NOT congested, it usually does not cost you
any more to inject or receive data up to the absolute rate of the
shared access system.
On Aug 30, 2009, at 12:56 PM, Stefano Quintarelli wrote:
Vint Cerf wrote:
no i am not in favor of volume pricing; i am in favor of capacity
I think that, if you you're an operator doing ULL, and you have a
fibre backhauling, then the vast majority of costs you incur in, is
the ULL line rental which is not charged on bitrate but rather a
fixed amount per pair. therefore, your costs are essentially fixed.
will you limit the capacity to x Mbps while the access line could
bear X Mbps ? one of your competitors will not and he will get the
It seems to me that capacity pricing can work where costs are
somewhat capacity related (e.g. where you don't have fibre
backhauling, where you don't have mandatory ULL to the
incumbent,...) but, otherwise I have the impression that you might
end up having just one capacity class which is full capacity.