Be gentle, this might take some explaining....
If I'm understanding correctly, 'proper' bandwidth (as opposed to all you can eat, or xx Gbytes per month) is generally sold as x Mbits CDR, with 95%tile bursting to whats available/ your port speed.
Does this mean that your lowest possible bill is for the x Mbits, but your actual bill will be for the transfer rate 5% off the peak level (or indeed the original x is you have no peaks?).
This presumably means that your bandwidth bill is effectively open ended (up to port speed) by nature of the fact you cant (initially) tell where and how big your peaks will be? [Answer = yes ?]
Also does this mean that the ISPs can effectively sell more megabits per month then they have committed themselves, on the basis that my peak wont be at the same time as customer y's peak [Answer = yes?]
Presumably the (decent!) ISP estimates peak loading over time and provides a decent amount of bandwidth thats in excess of the total customer CDR, but by how much (if at all) is up to him [Answer = depends how decent?]
Presumably the ISP only really has to provide as a minimum the total customer CDR, or indeed might even provide less if he assumed that customers wouldnt (simultaneously) use all the CDR they had purchased?
I'm not having a dig at anyone/ all here. just keen to understand how this bit of economics works. Any answers much appreciated!


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