Interconnection and competition among asymmetric networks in the Internet backbone market

Jahn, Eric; Prüfer, Jens

doi:10.1016/j.infoecopol.2008.03.002

Cited by 26 publications

(11 citation statements)

References 21 publications

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“…This is because with a larger error, more CP-LTP links are formed, and CPs pay more than the fair price for those links. There has been some recent work on studying ISP interconnection using non-cooperative game theory [4]- [8]. These models vary in complexity, dealing with issues such as asymmetric networks, hot and cold potato routing, and different cost structures.…”

Section: Small Transit Providers (Stp) and Large Transit Providers (Ltp)mentioning

confidence: 99%

A value-based framework for internet peering agreements

Dhamdhere

Dovrolis

François

2010

2010 22nd International Teletraffic Congress (lTC 22)

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Abstract-Internet Service Providers (ISPs) use complex peering policies, stipulating various rules for peering with other networks. Peering strategy is often considered a "black art" rather than science, and the outcome of a peering negotiation can depend on factors that are neither technical nor economic. Consequently, ISPs are required to make difficult decisions about the set of networks they should peer with, and the price they should demand/offer to ensure a stable peering link. We propose a quantitative framework for settlement-free and paid-peering links, based on the "value" of a peering link, i.e., the benefit that networks see from that link. We first study a solution where a centralized oracle determines a provably stable, optimal and fair price for a paid-peering link, based on perfect knowledge of the revenues and costs of each network. We next show that with perfect knowledge, the centralized solution can be implemented individually by the peering networks. We then study the effects of inaccurate estimation of peering value by the peering networks. Finally, we examine how value-based peering affects the density of peering links, the nature of end-to-end paths, and the profitability of various network types in the global Internet.

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Section: Small Transit Providers (Stp) and Large Transit Providers (Ltp)mentioning

confidence: 99%

A value-based framework for internet peering agreements

Dhamdhere

Dovrolis

François

2010

2010 22nd International Teletraffic Congress (lTC 22)

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“…Briglauer and Vogelsang (2011) and Jahn and Prüfer (2008) focus on the implications of potential network overcapacFootnote 5 continued of large parts of networks, particularly for the local-loop component (which is not used to transmit mobile services). 6 The exceptions being the UK, South Korea and Brazil.…”

Section: Introductionmentioning

confidence: 99%

Regulating networks in decline

Decker

2016

J Regul Econ

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Demand for some services provided on traditional postal, electricity, gas and fixed telecommunications networks can be characterized as being in decline in some jurisdictions. Declining demand can give rise to difficult questions for regulators, in particular, the extent to which network operators can fully recover the costs of historic investments, and the efficiency and distributional effects of applying different rate structures. It can also raise fundamental questions about: the on-going rationale for regulation; the essential functions provided by network operators; and whether regulations should be applied symmetrically to traditional and alternative suppliers. Depending on the pace and scale of the decline, regulation may need to adapt. Proposals for adapting regulation are identified and critically examined in this paper, particularly in terms of the approach to setting the allowed level of revenues and the determination of rate structures.

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“…In this arrangement, the peering providers do not charge each other for the traffic on the peering links. There are other kinds of peering relationships in which ISPs make an agreement to charge for traffic [4], [5].…”

Section: Introductionmentioning

confidence: 99%

The Implications of Overlay Routing for ISPs' Peering Strategies

Shao

Hasegawa

Taniguchi

et al. 2013

IEICE Trans. Inf. & Syst.

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SUMMARYThe Internet is composed of many distinct networks, operated by independent Internet Service Providers (ISPs). The traffic and economic relationships of ISPs are mainly decided by their routing policies. However, in today's Internet, overlay routing, which changes traffic routing at the application layer, is rapidly increasing and this challenges the validity of ISPs' existing agreements. We study here the economic implications of overlay routing for ISPs, using an ISP interconnection business model based on a simple network. We then study the overlay traffic patterns in the network under various conditions. Combining the business model and traffic patterns, we study the ISPs' cost reductions with Bill-and-Keep peering and paid peering. We also discuss the ISPs' incentive to upgrade the network under each peering strategy.

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Interconnection and competition among asymmetric networks in the Internet backbone market

Cited by 26 publications

References 21 publications

A value-based framework for internet peering agreements

A value-based framework for internet peering agreements

Regulating networks in decline

The Implications of Overlay Routing for ISPs' Peering Strategies

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