understanding 95th percentile billing

Am I correct that in case of 95th percentile billing, the monthly traffic usage is calculated based on the 95th percentile sample value? I mean for example in case the monthly traffic usage is following:

..customer has to pay for 97Mbps usage? If yes, then customer has to pay for quite a lot of idle bandwidth?

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DPG

Here is a better example:

Usually bandwidth readings are taken in 5 minute intervals. In a 30 day month, 8,640 readings are taken.
To find the 95th percentile, you would sort the readings from low to high. Reading number 8,208 would end up being the 95th percentile. This is what you would be billed for.

m4rtin

DPG wrote: »

Here is a better example:

Usually bandwidth readings are taken in 5 minute intervals. In a 30 day month, 8,640 readings are taken.
To find the 95th percentile, you would sort the readings from low to high. Reading number 8,208 would end up being the 95th percentile. This is what you would be billed for.

ok, so for example if reading number 8208 is 2.50Mbps, then customer is billed for 2.50Mbps usage for the whole month? This means that 95th percentile billing is best for the customer in case they have very high peaks for <5% of the readings and during other( starting at least from sample 8208 ) time the traffic usage is very low?