Broadband News

ISPA: BT should think again about proposed Usage Based Charging

The Internet Services Providers' Association (ISPA) has asked BT Wholesale to reconsider its Usage Based Charging (UBC) pricing scheme following a recent meeting in which the initial information on the UBC pricing was discussed for IPStream services. The UBC pricing structure is intended to add to the existing Capacity Based Charging (CBC) system which is better suited to larger providers. It is hoped UBC would provide a solution to the smaller providers affected by the huge price increases on IPStream Office services that BT Wholesale introduced at the beginning of September to comply with Ofcom's regulatory model.

"At present BT are contradicting themselves. If BT is taking the risk, it would be proposing a scheme that is based on charging for the average amount of data transferred. Under this proposal ISPs are actually taking the risk because they are paying for any peaks in bandwidth needs of their end users. Such peaks can occur when there are significant security downloads needed for end user’s PCs, when there is a new virus or even when there is a popular online event, such as a download promotion or a popular streamed event like an online concert."

Matthew Hare (Chair), ISPA Broadband Sub-group

For the full ISPA release, see here. [seb]

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