Exploring the Effect of Traffic Differentiation on Interconnection Cost Sharing
AbstractThis paper addresses the inter-provider costs sharing issue by exploring the effect of the traffic differentiation on the interconnection payments. In particular, we determine an original initiator of a transmission by means of traffic differentiation into two types, referred to as native and stranger. Unlike the existing financial settlement, under which the interconnection payments are made based on the net traffic flow, the proposed model governs cost compensations according to the differentiated traffic flows. Analytical studies were provided using Nash bargaining solution to explore how the determination of a transmission initiator affects intercarrier compensation. For this analysis we considered reciprocal and non-reciprocal access charges.
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Bibliographic InfoPaper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201042.
Length: 18 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Publication status: Published in ICOMP 2009, International Conference on Internet Computing, Las Vegas, USA, July 2009
Interconnection arrangement; intercarrier compensation; Internet economics;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- M15 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - IT Management
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-30 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ruzana Davoyan & Jorn Altmann, 2010. "Investigating the Role of a Transmission Initiator in Private Peering Arrangements," TEMEP Discussion Papers 201043, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
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