Changing the Speed of a Termed VXC
If you have a Virtual Cross Connect (VXC) on a contract term, you can change the speed of the VXC.
When you put a VXC on a contract term, you specify a rate limit, which is called the committed term speed. This is the minimum speed allowed on the VXC. The maximum VXC size is dynamically calculated based on network routes used to deliver the service. The VXC rate limit size cannot exceed the speed of the physical interface on which it resides.
There are restrictions on the changes that you can make to the rate limit of a termed VXC:
- You can increase the speed to the maximum limit allowed.
- You can reduce the speed to the committed term speed.
You can change the speed as many times as you need during a term within the restrictions.
VXC speed change example
As an example, you create a VXC on a 12-month term with a rate limit of 5 Gbps. This is the committed term speed.
The maximum limit allowed is calculated as 10 Gbps when you create the VXC.
If you need to increase the speed, you can set it to a value between 5 Gbps and 10 Gbps. You cannot set it to more than 10 Gbps.
When you want to decrease the speed, you can’t decrease it to less than 5 Gbps.
Pricing
The pricing rules for rate limit changes to a termed VXC are as follows:
- The term discount is applied as a fixed monthly amount and does not change throughout the term length, regardless of any speed changes.
- The fixed monthly discount amount is calculated off the percentage discount associated with the selected term length and original committed term speed.
This means that if you increase the speed of a VXC on term, the term discount does not increase, but remains fixed to the original discounted amount based on the original committed term speed.
Pricing Example
In this scenario, a 1 Gbps private VXC is created on a contract term. The table below shows the rack rate price, term discount, and total charged for each term duration.
1 Gbps Metro Private VXC | No Min Term | 12 Months | 24 Months | 36 Months |
---|---|---|---|---|
Rack Rate Price | $120 | $120 | $120 | $120 |
Term Discount | $0 | $20 | $25 | $30 |
Total | $120 | $100 | $95 | $90 |
If the speed of this service is increased to 10 Gbps on the 1st of the month, the following pricing will apply:
1 Gbps Metro Private VXC updated to 10 Gbps | No Min Term | 12 Months | 24 Months | 36 Months |
---|---|---|---|---|
Rack Rate Price | $240 | $240 | $240 | $240 |
Term Discount | $0 | $20 | $25 | $30 |
Total | $240 | $220 | $215 | $210 |
Charge increase | $120 ⬆ | $120 ⬆ | $120 ⬆ | $120 ⬆ |
Note the rack rate price rises with the speed increase, but the term discount remains the same.
Invoicing
You will see two line items on your invoice:
- The service rack rate charge at the Month to Month/No Minimum Term rate.
- The Fixed Monthly Term Discount.
Canceling the VXC
When the VXC is canceled, the early termination fee (ETF) is calculated based on the committed term speed, not the speed when the VXC is canceled.
Considerations
If you need greater flexibility in terms of increasing or decreasing the VXC speed, you might benefit from ordering a VXC on term at the minimum speed you require. This way, although the term discount will be lower, you will still get a term discount, with the added benefit of being able to adjust the speed as needed. If you order the VXC on No Minimum Term, you will receive no discount at all.
If you don’t anticipate the need to adjust the speed of the VXC regularly, you should order the VXC on term at the speed required to benefit from a higher term discount.