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Costs of Neutral/Unmanaged IP Networks

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  • Clarke Richard N.

    ()
    (AT&T)

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    Abstract

    An important issue in "network neutrality" is the degree to which networks that comprise the Internet may be "managed" by their operators. This paper examines the current costs of unmanaged/neutral network technology and demonstrates that as customer Internet usage patterns evolve and become both more bandwidth-intensive and real-time oriented, a model of pure neutrality would be extremely expensive for consumers. Unmanaged network capacity sufficient to accommodate expected consumer demand growth currently would result in bills between $143 and $416 per month – depending on the customer’s level of TV viewing. Such fees would likely make unmanaged/neutral Internet service commercially prohibitive.

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    File URL: http://www.degruyter.com/view/j/rne.2009.8.1/rne.2009.8.1.1170/rne.2009.8.1.1170.xml?format=INT
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    Bibliographic Info

    Article provided by De Gruyter in its journal Review of Network Economics.

    Volume (Year): 8 (2009)
    Issue (Month): 1 (March)
    Pages: 1-29

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    Handle: RePEc:bpj:rneart:v:8:y:2009:i:1:n:5

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    Web page: http://www.degruyter.com

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    Web: http://www.degruyter.com/view/j/rne

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    Cited by:
    1. Daeho Lee & Junseok Hwang, 2011. "The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review," TEMEP Discussion Papers 201184, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.

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