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What is Committed Data Rate (CDR) & 95th Percentile Billing?

Committed Data Rate (CDR)

Definition

Committed Data Rate (CDR) is the amount of bandwidth that a network service provider guarantees to a customer. Think of bandwidth as the width of a motorway and data as the cars. CDR is like a promise that there will always be a certain number of lanes open on the motorway for your cars (data) to travel.

Usage

It’s useful when you need a consistent internet speed. For instance, if a provider offers you a CDR of 50 Mbps (megabits per second), it means you are guaranteed to have that speed available at all times.

Importance

It ensures reliability. Just as you’d want a consistent flow of water from your tap, CDR ensures a consistent flow of data for your internet needs.

95th Percentile Billing

Concept

This is a billing method used by internet service providers. Imagine if you could be charged for water not by how much you use but by how much you use 95% of the time. That’s what 95th percentile billing is for internet usage.

How it Works:

  • Your internet usage is measured every 5 minutes (or some other interval).
  • At the end of the month, these measurements are lined up from highest to lowest.
  • The top 5% of your highest usage measurements are ignored.
  • Your bill is calculated based on the next highest measurement (the 95th percentile).

Advantages

This method is fairer for those who occasionally have high bandwidth spikes. Instead of paying for these rare spikes, you pay for what you use most of the time

Relation Between CDR and 95th Percentile Billing

CDR as a Baseline

Your CDR sets a baseline for your usual bandwidth needs.

Billing Above CDR

If your 95th percentile usage regularly exceeds your CDR, you might be billed extra for the additional usage.

Managing Costs

By understanding your CDR and how 95th percentile billing works, you can better manage your internet costs and avoid surprises in your bill.

Summary

In summary, CDR is like a guaranteed minimum speed for your internet, while 95th percentile billing is a way to charge you based on your usual, not peak, internet usage.

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