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Interconnection and competition among asymmetric networks in the Internet backbone market

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  • Jahn, Eric
  • Prüfer, Jens

Abstract

We examine the interrelation between interconnection and competition in the internet backbone market.Networks asymmetric in size choose among different interconnection regimes and compete for end-users.We show that a direct interconnection regime, Peering, softens competition 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 Peerings among relatively asymmetric networks.

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Bibliographic Info

Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 20 (2008)
Issue (Month): 3 (September)
Pages: 243-256

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Handle: RePEc:eee:iepoli:v:20:y:2008:i:3:p:243-256

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Web page: http://www.elsevier.com/locate/inca/505549

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Cited by:
  1. López, Ángel Luis, 2011. "Asymmetric access pricing in the Internet backbone market," Economics Letters, Elsevier, vol. 112(1), pages 3-6, July.
  2. Gireesh Shrimali, 2010. "Competitive resource sharing by Internet Service Providers," Netnomics, Springer, vol. 11(2), pages 149-179, July.
  3. Le Cadre, Hélène & Barth, Dominique & Pouyllau, Hélia, 2011. "QoS commitment between vertically integrated autonomous systems," European Journal of Operational Research, Elsevier, vol. 214(3), pages 627-643, November.
  4. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).

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