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Re: An Attempt at Economically Rational Pricing: Time Warner Trial
No we do not however we are allocated a invariant budget to deliver services for a fixed period of time. We cannot 'raise' prices as the pot of funds needs to be allocated to scholarship, teaching, housing and all the other things which make up a university we provide a service which must be available 7x24 for a fixed amount of funds. So even though we do not face a profit/loss calculus cost control is a key driver for us as every dollar not spent for IT can be redirected into scholarships for deserving students.
Our problem on the residential networking side is finding the balance between unfettered access which is untenable and providing a service which allocates the available pool of bits fairly among the average customers and trying to accomodate the large users who are downloading the latest Ubuntu ISO's without causing undue pain for either. For instance at Columbia resnets implement the same policy I posited in my initial response.
But I REALLY dont want to go back to the days of .25cts/minute access to the internet if we do that the entire thing will collapse due to the financial uncertainty and the internet will go back to being a
curiosity for Education and Government as it will be deemed 'too expensive' by the masses.
But it just seems that the telco's just cannot give up the concept of metered access for instance I use DSL at home which is PPPoE which means many 'broadband' devices are unusable here sure it terminates on a PIX but the PIX does not have a finger to press the reset button on the 'required by contract' access device sure I could directly terminate it but since I live in a rural area I need my ISP more than the ISP needs me hence devices which need 'always on' access are a pipe dream as my service is 'on most of the time'.
Roderick Beck wrote:
Universities don't face a profit calculus.