From August 1996 KCCS has moved to negociate fixed price monthly connection
charges for its business customers.
Since late July in extended discussions
with existing business customers and ISPs (there are about 12 ISPs
connecting to KCCS), agreements have been reached with all on a fixed
price for services. These prices have been negociated individually with
each customer but have been loosely related to the average volumes of
data that have been moved over the preceeding three months
The most difficult part of this exercise has been to arrive at agreed
rates with ISPs. The ISP market is being squeezed almost daily on price.
ihug have been acknowledged leaders in providing low price flat rate
connections. Xtra have moved time charging prices to a level that will
make life extremely difficult for other time charging ISPs. IBM have
quietly followed in reducing their hourly rates.
KCCS has been a customer of Netway until this month although additional
bandwidth has been available via two private international DDS links
to supplement the service from Netway. These links at 64Kbit and 128Kbit
have enabled KCCS to maintain reasonable response times for traffic when
the Netway International link has been well overloaded. This tends to
occur around 9pm daily and in general the situation is not improving as
Netway cannot get sufficient bandwith quickly enough to cope with ever
increasing user demands.
With these new flat rate prices charged by KCCS the ISPs connected to KCCS
can now expand their services to use more of the bandwidth capability of their
DDS, radio or ISDN links. Flat rates will be reviewed every 3 months in
conjunction with increases in KCCS's international bandwidth. This is
currently 1Mbit over three separate connections.
By December 1996 this is expected to be between 1.5Mbits and 2Mbits, again
spread over at least three different international bandwidth providers.
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