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An empirical analysis of Internet providers’ interconnection strategies

Author

Listed:
  • Nathalie Colombier

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Zouhaïer M'Chirgui

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Thierry Pénard

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper examines the structure of relationships among the major Internet service providers in order to better understand the industrial organization and interconnection strategies of these providers. We show that the network of Internet services providers exhibits a small world structure that facilitates cooperation between them (small world structure yields efficiency in terms of coordination and communication). However, the topology of the Internet is characterized by some instability related to the intense competition occurring among providers on the regional markets. Finally, we show that interconnection decisions depend on asymmetry effects, network externalities and geographical proximity.

Suggested Citation

  • Nathalie Colombier & Zouhaïer M'Chirgui & Thierry Pénard, 2011. "An empirical analysis of Internet providers’ interconnection strategies," Post-Print hal-03468951, HAL.
    • Handle: RePEc:hal:journl:hal-03468951
    Note: View the original document on HAL open archive server: https://hal.science/hal-03468951
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