Background: Know: prereq - LAN, PTT, ISP, p2p Recognize:

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Distribution of usage

Flat-rate & use-based billingEdit

There are two kinds of billing mechanisms, namely flat-rate line rental charge and use-based billing. This slide makes a comparison between these two billing mechanisms. The modes of billing are different between them. Flat-rate billing mechanism requires the users to pay service fee monthly while use-based billing mechanism requires for paying due to the service scopes and levels.

Flat-rate billing is traditionally utilized for data networks since the enterprise or LAN confines the accounting for usage. It is used especially in America but not in Europe where PTT (Postal, Telephone, and Telephone authority) dominates. However, given the increasing and heavier traffic and bandwidth requirement by users, ISPs (e.g. Time Warner) have changed the billing mechanism towards use-based billing.