This post was sponsored by Utility Telecom, a leading provider of VoIP telephone systems and Internet services to businesses across California and Nevada.
Telephone and internet companies that offer SD-WAN services have multiple methods of measuring data when determining usage for pricing structures. For this post, Utility Telecom breaks down the “95th percentile” and how this pricing structure saves consumers money.
This method of measuring bandwidth usage allows users to burst over their committed rates. In doing so, carriers are able to scale the customer’s billing with the cost of infrastructure and transit commits.
Unlike a fixed-data billing structure or data transferred payments, the 95th percentile observes how a consumer uses their data 95% of the time to determine how much data is needed.
For example, if a user regularly goes below their maximum internet speeds 95% of the time, they should only pay for the speed that they are using. This means customers do not have to pay for the maximum internet speeds that they are only using for 5% of the time.
Measuring data by the 95th percentile has is becoming a common billing practice utilized by ISPs. It allows both service providers and consumers to avoid unnecessary spending that happens when traffic goes over the 95th percentile.
This post was written by Elisha Taasin, Marketing Specialist at Utility Telecom Group, LLC.