Case Study: Usage Meter Accuracy

Years ago, ‘all you can eat’ plans, the staple of internet service provider’s (ISP) high speed data billing, were great for attracting customers. But today the popularity of YouTube, Netflix, Hulu, and countless other video outlets have turned the tables on service profitability. Thus, in the U.S. cable internet market, all signs now point to the widespread adoption of usage based billing.  The same kind of tiered, usage based billing plans that are now popular in cellular.

When a service provider makes the transition from ‘all you can eat’ to usage based billing, the question that inevitably arises is: How do I know if my usage meter is accurate?  An inaccurate usage meter can lead to a variety of issues including revenue loss, damaged customer relationships, and ultimately increased churn rates.  Usage meter accuracy is equally important to providers who offer Burstable Billing packages using the 95th percentile billing model.

The following solution was implemented at a Tier 1 ISP offering burstable billing in the United States who was interested in answering the question – Are the systems and procedures used to collect, measure, and bill my IP data usage accurate?

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