RE: Questions on the Draft

["Venning, Roger" <Roger.Venning@team.telstra.com>]

> -----Original Message-----
> From: James Kempf [mailto:James.Kempf@Sun.COM]
> Sent: Friday, 29 June 2001 1:23 AM
> To: Chris.Burke@motorola.com; more@ops.ietf.org;
> takeshita@dcl.docomo-usa.com
> Subject: Re: Questions on the Draft
> 
<snip software quality measurement via defects per kLOC argument>
> In a similar way, billing based on the number of packets is a simple
> way to quantify access charges, but it fails to take into account
> qualitative factors, such as that users (in the US at least) don't
> like to pay that way and have historically avoided using services
> that have such models. 
> 
> So if you want to design a service that people want to use, it is
> probably a good idea not to charge by packet, and instead figure
> out other ways to make additional money from the basic access.
> 
> This may be different in Japan and Europe, however.
> 
> 		jak
> 
<snip>

James,

for an example of consumer acceptance of pricing models outside the US:

in Australia, Internet style access is split between pay per hour of
connected time (dial-in), flat rate (dial in & broadband) & volume charged
(broadband, permanent dial-in), and all models are accepted. There has a
been a bit of a furore in Australia recently on download limits specified in
"acceptable use policy" that is associated with flat-rate broadband access.
As an indication, volume charged fixed connections have tarriffs generally
in the vicinity of US$0.10/MB. I have seen a consumer GPRS offering here
that had a rate of ~US$10/MB for the first 200kB in a session and ~US$5/MB
thereafter. Consumers (apart from those focussed on "content piracy") are
comfortable with plans that revolve around a flat rate portion for eg. 250MB
free and volume charged thereafter.

Roger.


--
Roger Venning - Technologist - Telstra Research Laboratories

          For a successful technology, reality must take
          precedence over public relations, for Nature
          cannot be fooled.                 Richard Feynman