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Costs of Neutral/Unmanaged IP Networks


  • Clarke Richard N.

    () (AT&T)


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 customers level of TV viewing. Such fees would likely make unmanaged/neutral Internet service commercially prohibitive.

Suggested Citation

  • Clarke Richard N., 2009. "Costs of Neutral/Unmanaged IP Networks," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-29, March.
  • Handle: RePEc:bpj:rneart:v:8:y:2009:i:1:n:5

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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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