how the 95th percintile billing works

Every carrier that offers a Burstable Internet Connection utilizes the 95th Percentile Billing method, but what does that mean?

95th Percentile Billing is a billing procedure based upon measuring peak usage, whether the traffic is inbound or outbound, over the course of a month after the carrier theoretically removes the top 5% of your peak billing traffic.

Providers typically sample your traffic every five minutes. At the end of the month, the samples are sorted from highest to lowest, and the top 5% (which is equal to approximately 36 hours of a 30-day billing cycle) of samples are discarded with regards to billing. The next highest measurement becomes the billable use for the entire month.

The carrier doesn’t flag or discard any of your bandwidth. 95th Percentile Billing allows you to exceed a specified threshold for brief periods of time without charging you an overage fee. Again, for approximately 36 hours, you can utilize 100% of your Internet connection threshold and not be billed for it!

Why Would I Want a Burstable Internet Connection?

Some businesses prefer Burstable Internet Connections because they allow for varying bandwidth demands like special projects or seasonal demands without having to contact the carrier to increase the Internet Port which could take up to two weeks. There is the potential, however, of overutilizing your commited bandwidth amount resulting in an Overage Fee. These fees can be charged at the same Mbps rate as your base bandwidth but more times than not, the carrier charges a slight premium for Overage traffic.

If you prefer to cap the bandwidth to avoid the potential of overage charges, then you can rate-limit your router. This will offer you the flexibility of increasing the bandwidth at your leisure and it’s instantaneous.

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