What to charge.
WHAT MODELS EXIST
Unlimited access at a fixed monthly price Volume-based, with a data allowance Speed tiers Business packages with commitments Prepaid and time-based access
WHAT UNLIMITED PRICING REQUIRES
Contention assumptions that hold.
WHY
A minority of users consume disproportionately, and unlimited pricing depends on averages.
WHAT TO ESTABLISH
Actual consumption patterns among your subscribers.
WHAT TO CALCULATE
Cost per subscriber: capacity, infrastructure, power, support and overheads.
WHY CAPACITY PER SUBSCRIBER
It is the variable cost and it determines the floor price.
WHAT CONTENTION MEANS
How many subscribers share a given amount of capacity.
WHY IT DETERMINES BOTH PRICE AND EXPERIENCE
Higher contention means lower cost and worse performance at peak.
WHAT TO ESTABLISH
A contention level that delivers acceptable performance at peak.
WHAT TO MONITOR
Utilisation at peak, against capacity.
WHY AT PEAK
Average utilisation conceals congestion.
WHAT TO DO WHEN PEAK UTILISATION APPROACHES CAPACITY
Add capacity, before complaints begin.
WHAT BUSINESS PACKAGES SHOULD DIFFER BY
Lower contention or dedicated capacity Service level commitments Faster fault response Static addressing, where required
WHY THEY JUSTIFY HIGHER PRICES
They cost more to deliver and they are worth more.
WHAT TO AVOID
Selling performance you cannot deliver Competing on headline speed alone
WHY
Subscribers judge by actual experience and they leave.
WHAT TO REVIEW
Pricing against capacity cost, which moves.
