Comparing Burstable and Flat-Rate Port $
Mark Welch
Recovering from Neurosarcoidosis. Former channel sales development @ Hurricane Electric internet services.
Hurricane Electric's flat-rate pricing is often a much better value than a competitor's burstable pricing.
Recently, a prospective customer inquired about burstable 5Gbps-on-10GE service, which a competitor quoted at $0.60 per Mbps ($3,000/month plus $0.60/Mbps for any usage above 5Gbps).
But on the same one-year term, at the same POP location, Hurricane Electric charges $3,000/month for a flat-rate 10Gbps port.
- Competitor: $3,000/month plus $0.60/Mbps for any usage above 5Gbps.
- Hurricane: $3,000/month plus $0.00/Mbps for any usage above 5Gbps.
Even ignoring the setup fee and other surcharges that the competitor charged (but we don't), our IP Transit service has exactly the same base cost, but zero overage charges, eliminating the competing potential for thousands of dollars of overage charges.