ATM Pricing

NetworkWorld has analyzed AT&T's pricing for ATM services in early 1997.

ATM Virtual Circuit Pricing

	PVC VBR (per month)	PVC CBR (per month)	SVC VBR (per month)	SVC CBR (per minute)
16 kbps	$29	NA	$0.01	$0.02
64 kbps	$94	$165	$0.03	$0.05
Frame Relay 256 kbps	$429	$743	$0.14	$0.25
1,024 kbps	$2,071	$3,605	$0.69	$1.20
$6,144 kbps	$5,400	$9,180	$4.50	$7.65

In addition, there is a charge based on port speed. For a DS-1 port at 1.544 Mbps, the charge is $2,200. It is $11,000 for a DS-3 port at 45 Mbps.

PVCs (permanent virtual circuits) must be ordered ahead of time. SVCs (switched virtual circuits) are made at the time of the data call.

CBR (constant bit rate service) gives a guaranteed speed. VBR (variable bit rate service) is a best effort service.

The authors also compared Frame Relay and ATM pricing. They found that where AT&T offered the same speed for both services, it priced the services identically. However ATM has higher overhead than Frame Relay, making ATM somewhat more expensive per bit at speeds available in both services.

The data are from David Rhode and Denise Pappalardo, "ATM, Frame Relay prove to be similar," NetworkWorld, February 10, 1997, p. 6.

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