Streaming and Caps

As you may already be aware, the usage modes (paradigm) of the Internet have been changing from mostly interactive web page browsing, email processing and other transaction based applications to streaming of videos, recorded TV shows, movies and music. The utilization graph below shows the swing in the evening when the Streamers begin to watch Internet TV. These applications change the rate of demand for bandwidth dramatically and force Internet Service Providers like AireBeam and carriers like Level 3, Hurricane Electric and others to make dramatically large investments in their infrastructure to increase their capability to carry more bandwidth per customer.

Customers want their communications costs to remain the same or go lower while their available bandwidth goes up. But, we all know that the more we consume of a resource, the more we have to pay for it overall, even if we get a discount for volume. This rule of commerce is already applies to our consumption of water, electricity, and fuel for our cars and has to be true for Internet usage as well.

AireBeam will soon begin capturing usage statistics for each of our subscribers. We will then evaluate those usage statistics with respect to our infrastructure costs as well as our recurring operating costs and develop an understanding of percentages of users consuming various levels of bandwidth. We expect to see that 80% or 90% of our customer consume less than the remaining 10% or 15% and that the amount consumed by this small percentage of customers is grossly out of proportion to the rest of the communities consumption.
Bandwidth Demand Swings
Like most other ISPs, we already know that the majority of our customers are not engaging in excessive bandwidth consumption. And like most other ISPs, we intend to establish bandwidth caps that are above the usage levels of most customers, the 80-90% that consume what we will call “normal” amounts of bandwidth in proportion to the cost of the monthly service. Thus, most customers will be unaffected by the caps when they are imposed.

How Can I as a User Reduce my Demand and Still Enjoy the Internet?

Perhaps the easiest thing you can do is to make the decision to watch shows as a family, rather than Mom and Dad and the three kids each watching their own shows on their own displays. When most of our customers bought your TV signal from Dish or DirecTV, the used it to feed one or two TVs? Netflix has already put a stake in the ground by charging extra for multiple users.

Questions or comments? Talk to the Boss…CLICK HERE to send him an email..