95th Percentile Billing

Speakers: Amie Elcan, CenturyLink
Monthly 95th percentile billing to internet access customers, such as CDN providers, is a standard practice by backbone internet service providers. The 95th % value has traditionally been used for billing so that customers are not overcharged for transient bursty data traffic. This 'burstable billing' practice is more favorable to customers with less peaked traffic. If the peak to mean ratio is significant, then the overall price per unit volume transferred increases. Internet traffic time of day patterns are currently peaked due to the popularity of bandwidth intensive video applications in the evening. Is 95th% billing compatible with peaked video traffic? Consumers are starting to pay for internet service based on volumes consumed. Might alternative pricing structures provide more transparency with respect to price per unit volume for both customers and providers? This analysis will provide an in depth examination of sample traffic data subject to 95th % measurement and consequences of this billing approach.
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