LambdaNet's new pricing policies lower IPVPN costs

2 December 2002 -- LambdaNet Communications, Hannover, the pan-European supplier of network-related telecommunications services, today introduces a new billing option for its IP VPN customers - "destination-based billing".

2 December 2002 -- LambdaNet Communications, Hannover, the pan-European supplier of network-related telecommunications services, today introduces a new billing option for its IP VPN customers - "destination-based billing".

LambdaNet claims to be the first European IP-VPN provider to introduce a pricing option based on destination zones. The billing model is similar to that used to calculate telephone charges.

To enable this, the company has built an IP address-monitoring tool into its existing IP/MPLS network. This logs all the destination zones for the IP packets and charges for these according to destination.

LambdaNet has introduced zoned pricing in response to changing end-user requirements. Many of its customers with European-wide VPN networks are increasing the amount of data that they send within a single country boundary.

It has added destination billing to its already flexible billing portfolio. Tariffs vary according to "destination classes", which offers greater fairness in the calculation of the rates and increased transparency for VPN solutions.

"Using destination-based billing, LambdaNet is able to differentiate between national and international data traffic and charge accordingly against predefined zoned rates. This means that the customer only pays the international rate if the IP packets are actually sent abroad," explained Bernie Smedley, CEO of LNG Holdings S. A.

He continued: "This billing method, which is based on the actual needs of the customer, makes it possible to set up a very efficient, cost-effective VPN built on the LambdaNet network. By introducing this option, LambdaNet can further demonstrate the performance capacity of its technical infrastructure based on IP/MPLS and set the impetus for the industry to move towards more innovative pricing policies."

For more information on "destination-based billing", go to www.lambdanet.net

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