reply to Mr Matt
Re: If Power Company is allowed to price the same as ISP's!
said by Mr Matt:Some commercial customers do see their demand charge rounded up to the next kilowatt, at least in my area. I'll concur though that the practice of rounding up to the next gigabyte is bullshit and should stop.
I pay about $0.13 per KWH. If I use 1100 KWH I will pay $143.00 or $0.13 for each KWH I use. If I was purchasing power the same way ISP's want to charge for data throughput I would pay $13.00 per 1000 KWH, I would pay for 1000 KWH even if I used 1 KWH over 1000 KWH increment.
said by Mr Matt:You can regulate them like that but there's still going to be some sort of base monthly charge. If you go on vacation and only use 1kWh is your electric bill going to be $0.13? I don't think so. Irrespective of how much energy you use, it costs money to maintain the hookup at your house, read the meter, generate your bill and so on.
If the ISP's were regulated and restricted to $0.01 per megabyte the cost for 100 Megabytes would be $1.00.
said by Mr Matt:What's payload vs. overhead? Do you think you should only be charged for the TCP payload but not the TCP and IP headers in the packet even though the ISP had to carry them across its network? Or are you referring to PPPoE/ATM overhead on DSL and Ethernet overhead on DOCSIS? You might have a better case there but even that still requires bandwidth on the ISP side. ATM and Ethernet headers still require the transmission of bits across the network.
There is another issue here in that the ISP does not specify whether the customer pays only for payload or payload + overhead and what the overhead is. Residential electric customers do not pay for transformer losses.