Right, I understand how it works. I would have expected, in this particular case, though, that they have a fixed amount of bandwidth available at a fixed dollar amount per month (just for the consistent/predictable monthly expenditure). It may very well be that burstable billing was their best option, though.
> at peak usage times, total bandwidth usage across the entire network is 30Mbps or so.
The microwave backhaul is connected to a 100 Mbps port which would come out to $9/Mbit/month. From what I've seen, that's higher than what you'll pay if you're connecting to an upstream in a well-connected facility. If we then assume 95% billing and peak usage at 30 Mbps, that's an obscene per-megabit rate.
It's quite possible that you're right, of course. I'm making some assumptions based on my experiences which very likely are different from those on a small island in the PNW.
> I would have expected, in this particular case, though, that they have a fixed amount of bandwidth available at a fixed dollar amount per month (just for the consistent/predictable monthly expenditure).
Wholesale bandwidth is sold with a commit and burst. The commit is your fixed monthly charge (and bandwidth) you pay for each month regardless of how much you use. Overages, calculated with the 95th percentile formula, are paid at the burst rate.
> The microwave backhaul is connected to a 100 Mbps port which would come out to $9/Mbit/month. From what I've seen, that's higher than what you'll pay if you're connecting to an upstream in a well-connected facility. If we then assume 95% billing and peak usage at 30 Mbps, that's an obscene per-megabit rate.
Well, yes. I remember Hurricane Electric running a promotion for 1 Gbps of IP transit for $360 a month, but then again they are not present at a HE PoP.
As to pricing, it sounds like run of the mill rural charges. Also we don't know their commit, so can't really calculate with Mbps rate. Perhaps they just decided to go with a zero commit and $30 burst rate instead of paying a flat fee of $1500 for the 100M port. Would make sense at their very low usage rates.
I guess $900 is just the average bill for their usage right now.