Aside from any CPE costs, the customer pays for three Frame Relay cost components as follows:

In the example in the figure, the customer is paying for the following:

Note: The bandwidth values used throughout this chapter are for comparative purposes only. They do not necessarily reflect actual implementations.

Oversubscription

Service providers sometimes sell more capacity than they have on the assumption that not everyone will demand their entitled capacity all of the time. This oversubscription is analogous to airlines selling more seats than they have in the expectation that some of the booked customers will not show up. Because of oversubscription, there are instances when the sum of CIRs from multiple PVCs to a given location is higher than the port or access channel rate. This can cause congestion and dropped traffic.