Definition
Bandwidth is the amount of data transferred over a network in a given time period, commonly measured and billed per GB.
Why it matters
High data transfer can drive material infrastructure costs and can quickly erode margins if not priced or controlled.
Pricing implications
Separate storage from bandwidth in plans, use usage tiers to reflect marginal costs, and add overage rates for spikes.
Common drivers
Large file downloads, streaming, API responses, and CDN cache misses are typical bandwidth drivers.
Measurement tips
Track bandwidth by product area, customer segment, and region to identify the highest cost contributors.
Checklist
- Define what counts as billable transfer.
- Decide on included bandwidth per plan.
- Set tiered rates for overages.
- Monitor cache hit rates and origin fetch usage.
- Review bandwidth costs quarterly.
- Surface bandwidth usage in customer dashboards.
- Align rate cards with vendor costs.
- Document bandwidth assumptions in pricing models.
Examples
- 2 TB included per month, then $0.08 per GB.
- Tiered rates: 0 to 10 TB, 10 to 50 TB, 50 TB+.