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Comment by Karunamon | Hacker News Reader

Bandwidth pricing is a funny thing, in that it's only metered because it's convenient to do so. You haven't consumed any kind of finite resource by moving 1GB or 1000GB. There isn't any "use".

And it makes good business sense besides. They can let the guy off and eat the probably less than a hundred or so bandwidth this guy actually cost them due to their upstream providers, get a good writeup and look better as a result,

..or kill his account, take him to collections, etc, etc, etc, (which would probably cost them more than $1K anyways), and lose a customer and get a PR black eye while they're at it.

So yeah, it would be a jerk move, and a pretty dumb one at that.

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In the end, we are talking about a finite resource, because the Internet can only handle so much data transfer at one time. One way or another, your packets have to travel over physical infrastructure which, just like your home network, has a maximum capacity. Use of this infrastructure costs money; charging by bandwidth should help prevent users from "clogging the tubes" willy-nilly because there is a cost associated with excessive use.

Except most providers don't charge by time and demand (which would actually make sense), but by a fixed cap or fixed cost per byte. If the problem is congestion as you suggest, surely it would make more sense to charge different amounts based on time of day, length of session, etc?

Which would give Amazon more trouble? 1,000 TB spread out over a month, or 1,000 TB spread out over a day? Their current pricing model assumes both of these are equal, which they are plainly not.

Aside: Caps make the same mistake. If you have a 250GB cap, the ahem ISP charges the same whether you burn through that cap in a month or in a day.

It is more complicated than that. Customer convenience must be considered. For instance, I and many others like me will not buy data transfer from someone when figuring the cost requires me to account for the time of day and phase of the moon.

Customers already deal with such billing from other companies and it's not difficult.

Ever had a cell phone? During the day counts against an allotment, after a certain time at night, calls are free. For a home internet connection it would probably be reversed, as peak usage is right after work lets out.

Some power companies also do the same thing.

You've consumed energy.

But in any case, even if in theory nothing is used, are you sure that Amazon doesn't have to pay for it too? Because then it's irrelevant whether it was really used or not.

Not $1,000 worth in either case.

Are you taking in account the time spent by the tech person(s) to read his email and process the rebates? People time is expensive, particularly if some manager needs to approve it.

Maybe it wouldn't be $1000, but it'd still be significantly more than $0.

We're not counting rebates yet - we're saying "This guy ran X amount of bandwidth through our system which we normally charge Y for" - how much did Amazon pay their upstream for that bandwidth and the billing (which is all completely automated)

That's my point: if you want them to charge less, the billing for this case is not automated (and is thus much more expensive).

I'd be flabbergasted to find out their billing system isn't at least as simple as their AWS console. 5 minutes of CSR work tops.

Would probably even be easier to completely drop a bill as opposed to modifying it to charge a lesser amount.

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