How to Charge for Internet Usage by ISP

Charges for internet usage varies by ISP.

Charging for internet usage by internet service provider (ISP) requires similar techniques and processes for ISPs, though rates vary from one internet service provider to another. Internet providers can consider charging customers for internet usage, based upon the desired download and upload speed of the internet, the rate at which the internet is accessed daily, weekly or monthly and the geographical location of internet service. According to CTV News, Canada's telecommunications administrator decided that telecom companies will provide billing based on usage of service rather than a flat rate. Digital networks cost billions of dollars, so ISPs desire a return on investment.

Instructions

1. Review the location of customers and determine how the location of the customers correspond with their usage of internet services. This procedure should also be analyzed for other countries. You must determine the effects of usage in other countries and compare the cost of usage to the actual cost for ISPs. This will enable ISPs to structure costs that will be economical for users or customers and also provide business profit.

2. Determine the cost for internet service providers to offer dial-up services in each location. Also, transform the ratings for customer usage into dollar amounts for each location where ISP service is offered. Types of dial-up services include ISDN, 28.8, 33.6 and 56K. Identify the differences in cost for the same amount of usage for each type of dial-up service.

3. Charge customers for the amount of bandwidth that they use. If customers exceed the bandwidth limit, customers should be charged additional fees for the overage. Estimate the cost for ISPs to provide dedicated services such as frame relay, T1, T3, FracT3 and DSL.

4. Charge companies for the amount of data that they use. However, this idea is not beneficial for smaller ISPs with unlimited data plans.

References

• The List: The Definitive Internet Service Providers Buyers Guide
• CTV News: Backlash grows over Internet billing decision