New Zealand ADSL Mailing List


Re: JetStream pricing for national versus international traffic

From: Craig Whitmore <lennon_at_orcon.net.nz>
Date: Sat, 10 Aug 2002 06:55:34 +1200
Message-ID: <002a01c23fd6$58166890$0100000a@orcon.net>

There is no incentive for Telecom to change their pricing model. We only
saw datacaps introduced to the 128k Jetstream Starter connection by ISPs
after the problems introduced by p2p filesharing.. a gigabyte a day in
the extreme curcumstances... imagine if that were to become a gigabyte
an hour because you could get unmetered full rate local data transfers.

Yes. very true.. All the ISP's basically waited for Xtra to release their
pricing before working out what they whre charging. But Xtra's pricing model
didn't work so they had to enforce limits later on. (IHUG with their satnet
service did the same etc). (its very hard to work out a pricing model on a
service which doesn't exist yet).

What other industries have we seen this on.(changing the pricing model after
a service has been released) not many?

And all other ISP's followed suit (as they had to). I don't believe
personally that any ISP makes money out of Jetstart, but ISP's have to offer
it (or they'd just all go to Xtra)

>
> Bandwidth in NZ is expensive, Jetstream provides affordable connections
> to home users and business who want to download that 5Mb email
> attachment now, who dont want to wait for that webpage to load. If the
> system is open to abuse, that abuse will happen. Anyone disagree?
>

IMHO Internal NZ Bandwidth is not expensive at all (saying that from an
ISP/wholesale point of view). For example the price difference between say a
10M and a 100M link can be say only 15-20% more expesnive. The expensive
part is "the the end user - to the public" part of the loop.

But saying that.. when for example Telecom's Jetstream network "stuffs up"
and everyone gets full rate on jetstart.. you do see the affects of not
having enough bandwidth internally on telecom's network. For a few hours a
number of people get really fast connections and then it slowly dies to a
crawl, and affects Jetstream customers as well (who get slowed down to a
crawl as well) (This has only happened a few times, but it has happened)

Thanks
Craig Whitmore

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Received on Sat Aug 10 18:56:33 2002

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