Usage-based charging using effective bandwidths: studies and reality

V. A. Siris, D.J. Songhurst, G.D. Stamoulis, and M. Stoer

In 16th International Teletraffic Congress (ITC-16), Edinburgh, UK, June 1999.
Extended version available as TR-243 [pdf, .ps.gz]


This paper studies an approach that uses the effective bandwidth as a measure of resource usage for creating time-only (flat rate) and time- and volume-based tariffs for ATM services with guaranteed QoS. We first argue that it is advantageous for a network operator to charge according to effective bandwidths since this would lead to higher aggregate utility and to competitive gains related to the long term impact of pricing. Next, we present numerical investigations involving real broadband traffic, showing how this tariffing approach can accurately and consistently take into account the effects of link and traffic contract parameters on resource usage. Finally, we compare the tariffs derived under the studied approach with real tariffs published by a particular network operator.

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