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Understanding and managing Capacity Billing

Updated over 2 weeks ago

What is Capacity Billing?

Capacity Billing allows you to purchase and pay for a set number of concurrent call channels (your Capacity Threshold) at a fixed monthly price. You can make as many calls as you like, up to your threshold, at discounted rates included in the monthly charge. If your usage exceeds this threshold, additional Burst Channels will be billed at a higher rate for the extra Capacity used that month.

How to manage Capacity

Setting Capacity Threshold

When you start using Capacity Billing, you’ll set your initial Capacity Threshold (the number of concurrent calls you expect to need), which represents the number of channels you purchase and pay for in advance each month. Once set, this threshold will take effect at the start of the next billing cycle (next month).

Increasing Capacity

You can increase your Capacity Threshold at any time to flexibly match your Capacity purchase with your expected call volume. The increase will take effect at the start of the next billing cycle.

Decreasing Capacity

To decrease your Capacity Threshold, please contact your Account Manager. This helps prevent accidental reductions that could impact your service or forecasting. Once approved, the decrease will also take effect at the start of the next billing cycle.

Important limits

You can increase your Capacity Threshold within the range planned for your expected needs. If you anticipate needing more, we can work with you to unlock additional capacity. Please note that bursting beyond your threshold is allowed but is billed as extra usage at a higher rate.

What to expect on your bill

Your bill will include separate charges for:

  • Provisioned Capacity: This is the fixed monthly charge for the concurrent call channels you’ve provisioned (your Capacity Threshold) that must be paid in advance each month, regardless of usage.

  • Burst Capacity: If you exceed your Capacity Threshold at any time during the billing month, the maximum number of concurrent calls above that threshold (called the High Water Mark minus the Threshold) will be billed separately at a higher Burst Rate, charged in arrears.

  • Call Usage Charges: These are any applicable per-minute charges for outbound national, international, and inbound toll-free calls, which are generally charged at reduced rates compared to metered billing.

  • Inbound Non-Toll-Free Calls: These are typically zero-rated or charged at a very low cost.

Monitoring and alerts

You can view daily usage reports showing your concurrent calls and Capacity Threshold values. You’ll also receive alerts if your usage exceeds your threshold on any day, helping you avoid unexpected charges.

If you have any questions or need help managing your Capacity Threshold, please contact your Account Manager or open a ticket with your Bandwidth Support Team.

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