Estimating Market Power in the Internet Backbone Using Band-X Data

Giovannetti, Emanuele; Ristuccia, Cristiano Andrea

doi:10.2139/ssrn.453482

Cited by 9 publications

(5 citation statements)

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“…It is the primary way in which ISPs provide their customers with access to web pages (Miller [20]). The backbone services market is characterized by huge fixed investments, leading to a small number of IBPs, which are, in turn, able to exercise market power (see Giovannetti and Ristuccia [10], or Giovannetti et al [8]), which often takes the form of discrimination in terms of connection quality (see Crémer et al [6]), and which depends on the relative size of the networks exchanging data.…”

Section: The Bilateral Peering Decisionmentioning

confidence: 99%

Internet peering as a network of relations

Lippert

Spagnolo

2008

Telecommunications Policy

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We apply results from recent theoretical work on networks of relations to analyze optimal peering strategies for asymmetric ISPs. It is shown that -from a network of relations perspective -ISPs' asymmetry in bilateral peering agreements need not be a problem, since when these form a closed network, asymmetries are pooled and information transmission is faster. Both these effects reduce the incentives for opportunism in general, and interconnection quality degradation in particular. We also explain why bilateral monetary transfers between asymmetric ISPs (Bilateral Paid Peering), though potentially good for bilateral peering, may have rather negative effects on the sustainability of the overall peering network.

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Section: The Bilateral Peering Decisionmentioning

confidence: 99%

Internet peering as a network of relations

Lippert

Spagnolo

2008

Telecommunications Policy

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“…9 A Paid Peering settlement could appear in several different forms of payment, either fixed amount payments or a variable charge per unit of traffic (or a combination of both). 10 For more details on Internet traffic, see Giovannetti and Ristuccia (2005) or Kende (2000). 11 Internet Service Providers selling Internet access to those consumers are vertically integrated.…”

Section: The Modelmentioning

confidence: 99%

Interconnection and competition among asymmetric networks in the Internet backbone market

Jahn

Prüfer

2008

Information Economics and Policy

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JEL classification: L10 L96 D43 Keywords:Internet backbone Endogenous network interconnection Asymmetric networks Two-way access pricing a b s t r a c tWe examine the interrelation between interconnection and competition in the Internet backbone market. Networks that are asymmetric in size choose among different interconnection regimes and compete for end-users. We show that a direct interconnection regime, peering, softens competition as compared to indirect interconnection since asymmetries become less influential when networks peer. If interconnection fees are paid, the smaller network pays the larger one. Sufficiently symmetric networks enter a Peering agreement while others use an intermediary network for exchanging traffic. This is in line with considerations of a non-US policy maker. In contrast, US policy makers prefer that relatively asymmetric networks peer.Ó

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“…Though the transit layer appears to work well, there is some uncertainty about how well it will continue to work (see Giovanetti, 2000;Giovanetti and Ristuccia, 2003). Oftel has intervened on a continuing basis to create the conditions for homeostatic markets.…”

Section: Transportmentioning

confidence: 99%

Internet governance in the UK

Collins

2006

Media, Culture & Society

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Discussion of internet governance has been shaped by three myths: that the market can decide, that the Internet is different to 'legacy' media and that national governance is unimportant. The author challenges these three myths through an examination of internet governance in the UK in 2003/4 and argues that the internet is a layered, not vertically integrated, medium of communication, that three modes of governance prevail hierarchy, markets and networks (self-regulatory). The layers of the UK internet are examined, their governance identified and evaluated, and the conclusion drawn that network governance is a distinctive, but not universally present, characteristic of UK internet governance. Also, contemporary, well-functioning arrangements may be unstable, and stronger hierarchical governance may be required in the future.

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Estimating Market Power in the Internet Backbone Using Band-X Data

Cited by 9 publications

References 0 publications

Internet peering as a network of relations

Internet peering as a network of relations

Interconnection and competition among asymmetric networks in the Internet backbone market

Internet governance in the UK

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