Internet Tariffs...Coming Soon? Message Board

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Strategies & Market Trends : Internet Tariffs...Coming Soon?

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To: EL KABONG!!! who wrote (5)	1/24/1999 8:14:00 PM
From: Jorj X Mckie	Read Replies (1) of 36

KJC, The tariffing should be similar in structure to the current tariffing seen with the PSTN (public switched telephone network). In a circuit switched network you pay for the amount of time that the circuit is active. The current PSTN is a TDM structure (Time Division Multiplex) and so it doesn't matter if you are talking, being silent, using a modem or fax, it takes the same amount of resources on the network. In a packet network, if you are on an internet telephone call and you are not saying anything, it will take fewer service provider resources. The service providers want to be able to charge based on the actual amount of bandwidth being used because it has a direct correlation to the amount that they have to spend on their infrastructure. It will much harder to implement than it may seem on the surface, so you will likely see a class of service billing structure first. This though would be on a packet level as well. This is because you would have to identify real time traffic (voice/video) over low priority traffic such as file transfers or email. JXM

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