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Investigating the Role of a Transmission Initiator in Private Peering Arrangements

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Author Info

  • Ruzana Davoyan

    ()

  • Jorn Altmann

    ()
    (Technology Management, Economics, and Policy Program (TEMEP), Seoul National University)

Abstract

This paper investigates the impact of determination of an original initiator of transmission on demand as well as profits of the providers. For that purpose we present a new model, called differentiated traffic-based interconnection agreement (DTIA) that differentiates traffic into two types, referred to as native and stranger in order to determine a transmission initiator. In comparison to the existing financial settlement, under which the payments are based on the net traffic flow, the proposed model governs cost compensation according to the differentiated traffic flows. In addition, a traffic management mechanism that supports the presented approach was described. Analytical studies were provided using Nash bargaining solution to explore how the proposed strategy affects the outcome of providers¡¯ negotiation. The key consequence of the obtained results showed that determination of an initiator of transmission induces providers to receive higher profits.

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File URL: ftp://147.46.237.98/DP-43.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201043.

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Length: 13 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Publication status: Published in IFIP/IEEE IM 2009, International Symposium on Integrated Network Management, New York, USA, June 2009
Handle: RePEc:snv:dp2009:201043

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Related research

Keywords: ISP interconnection; peering agreements; transit agreements; charging; pricing; game theory; network Provider;

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References

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  1. Michael Carter & Julian Wright, 1999. "Interconnection in Network Industries," Review of Industrial Organization, Springer, vol. 14(1), pages 1-25, February.
  2. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
  3. Yoon Kiho, 2006. "Interconnection Economics of All-IP Networks," Review of Network Economics, De Gruyter, vol. 5(3), pages 1-15, September.
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Cited by:
  1. Ruzana Davoyan & Jorn Altmann & Wolfgang Effelsberg, 2010. "Exploring the Effect of Traffic Differentiation on Interconnection Cost Sharing," TEMEP Discussion Papers 201042, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
  2. Ruzana Davoyan & Jorn Altmann & Wolfgang Effelsberg, 2010. "Intercarrier Compensation in Unilateral and Bilateral Arrangements," TEMEP Discussion Papers 201041, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.

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