Changing the Speed of a Termed IX
If you have an Internet Exchange (IX) connection on a contract term, you can change the speed of the IX.
When you put an IX on a contract term, you specify a rate limit, which is called the committed term speed. This is the minimum speed allowed on the IX during that contract term.
There are restrictions on the changes that you can make to the rate limit of a termed IX:
- You can increase the speed above the committed term speed.
- You can reduce the speed to the committed term speed.
- You cannot reduce the speed below the committed term speed.
You can change the speed as many times as you need during a term within these restrictions.
IX speed change example
As an example, you create an IX on a 12-month term with a rate limit of 1 Gbps. This is the committed term speed.
You can increase the speed to any value above 1 Gbps, such as 1.5 Gbps or 2 Gbps.
You can decrease the speed down to 1 Gbps (the committed term speed), but you cannot decrease it below 1 Gbps while the IX is on term.
Pricing
The pricing rules for rate limit changes to a termed IX are as follows:
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The term discount is applied as a fixed monthly amount and does not change throughout the term length, regardless of any speed changes.
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The fixed monthly discount amount is calculated off the percentage discount associated with the selected term length and original committed term speed.
This means if you increase the speed of an IX on term, the term discount stays fixed to the original discounted amount based on the original committed term speed.
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If Minimum Term Renewal is enabled and you change the IX speed, the service will be repriced at the current market rate. The contract term will renew at the same market rate and term discount as when the speed change was ordered.
Pricing example
In this scenario, a 1 Gbps remote IX 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 IX | 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 2 Gbps on the 1st of the month, the following pricing will apply:
| 1 Gbps IX updated to 2 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 IX
If the termed IX is canceled, the early termination fee (ETF) is calculated based on the committed term speed, not the speed when the IX is canceled.
Considerations
If you need greater flexibility in terms of increasing or decreasing the IX speed, you might benefit from ordering an IX 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 IX on No Minimum Term, you will receive no discount at all.
If you don’t anticipate the need to adjust the speed of the IX regularly, you should order the IX on term at the speed required to benefit from a higher term discount.