Differentiated Traffic-based Interconnection Agreements for Next Generation Networks

The issue of inter-provider cost distribution in international interconnection has been a subject of intense debate in the past few years. For various reasons, developing countries have had to bear high costs for international Internet connectivity. The transition of communication networks to IP-based networks enhances the urgency to resolve the apparent lack of fairness in international interconnection. This is due to the development of cheap technologies for voice communications, which reduces the revenues of developing countries received from international telephone calls, and at the same time, places the burden of international Internet connectivity costs on developing countries. There exists a large body of literature toward achieving the equitable and sustainable expansion of infrastructures in developing countries. It is mainly focused on proposing interconnection pricing schemes. However, the existing approaches strike the balance between the two objectives of interconnection pricing, viz., competition development and profitability quite differently. Hence, no single solution has a clear advantage over the others. The alternative approach towards solving the interconnection cost-sharing problem involves compensating each provider for the costs that it incurs in carrying traffic generated by other providers. However, compensation between providers cannot be solely done based on the traffic flows, because it provides a poor basis for allocating any costs. In the Internet, it is not clear who originally initiated a transmission, and therefore, who should pay for the costs. The key contribution of this dissertation is to support the development and profitability of the communications market by reducing the existing imbalance in the interconnection cost allocation. A novel technique called Differentiated Traffic-based Interconnection Agreement (DTIA) was proposed. The key idea behind DTIA is that instead of performing intercarrier compensation based on traffic flows, compensation is performed based on the original initiator of a transmission. Determination of a transmission initiator in packet-switched networks is a complicated task that deals with technical issues and considerable costs. We have tackled this challenge by marking the information about the transmission initiator in the IP packet header, and have proposed a traffic differentiation mechanism that has low computational complexity. In DTIA, providers get compensated differently for traffic originally initiated by their own customers, as opposed to traffic initiated by customers of other networks. Such an approach stimulates the development of market by ensuring that each provider is compensated for utilization of its infrastructure. In order to evaluate the differentiated traffic-based approach, we formulated economic models and analyzed their behaviors from different perspectives. Compared to existing solutions, the DTIA model enhances the economic efficiency of the market by improving social welfare

Network Neutrality and the Evolution of the Internet

In order to create incentives for Internet traffic providers not to discriminate with respect to certain applications on the basis of network capacity requirements, the concept of market driven network neutrality is introduced. Its basic characteristics are that all applications are bearing the opportunity costs of the required traffic capacities. An economic framework for market driven network neutrality in broadband Internet is provided, consisting of congestion pricing and quality of service differentiation. However, network neutrality regulation with its reference point of the traditional TCP would result in regulatory micromanagement of traffic network management. --Broadband Internet,network neutrality,quality of service differentiation,congestion pricing,interclass externality pricing,interconnection agreements

Pervasive Gaming: Testing Future Context Aware Applications

Over the last few years, many discussions have centred around the issue of interconnection rates and their economic impact on the market. Interconnection charging in Europe is still based mainly on the calling party pays (CPP) principle combined with element based charging (EBC). Due to the convergence of the classical PSTN/ISDN and the IP world to next generation networks (NGN), the different charging principles and systems are being reviewed to determine the optimal solution for the future. In its working program for the year 2008, the Austrian Regulatory Authority (RTR) launched an industry working group on charging principles and systems for wholesale services. This paper highlights some of the central issues of the discussions that have taken place and contains the authors’ views and conclusions .1 Further, the paper identifies possible charging systems, as well as economic assessment criteria for these systems and how the different charging systems may be evaluated with respect to those criteria. Regarding the usefulness of industry working groups, the work has shown that these lead to a higher degree of transparency between regulator and market players as well as a better understanding between the market players themselves. The main drawback is that working groups are time consuming and that it is almost impossible to agree on meaningful outcomes. Regarding the assessment of the charging models it was possible to derive a set of 10 criteria according to which charging systems can be evaluated. There was a rather broad consensus on the delineation of charging models as well as the economic criteria. When it comes to the results of the evaluation, the discussions brought forward very controversial views amongst the participants. No common views could be achieved on which the charging model fulfills the defined criteria in the best manner.Interconnection, NGN, charging principles, CPP, Bill&Keep.

TOWARDS SUSTAINABLE QUALITY OF SERVICE IN INTERCONNECTION

This paper analyses the structure of the Internet marketplace and the business relationships of key players involved in network services provision. A brief overview of existing pricing policies and research work in this area is presented and some new issues are introduced. We believe that the role of information asymmetry is critical when considering agreements for Internet access and interconnection. In negotiation and contract preparation, information asymmetry gives rise to adverse selection. The current structure of connectivity agreements does not address information asymmetries thus allowing the possibility of opportunistic behaviour in the form of moral hazard. Inasmuch as interconnection agreements involve sharing and/or exchanging network resources, either party will tend to exploit the agreement to its own advantage (i.e. conserving its own resources) and, possibly, to the detriment of the other (i.e. overutilising the other’s resources). The discussion focuses on interconnection agreements between Internet Service Providers, namely peering and transit. The paper concludes with an outline of an incentive compatible mechanism that can sustain quality of service requirements in interconnection agreements.interconnection information asymmetry

Network neutrality and the evolution of the internet

In order to create incentives for Internet traffic providers not to discriminate with respect to certain applications on the basis of network capacity require-ments, the concept of market driven network neutrality is introduced. Its basic characteristics are that all applications are bearing the opportunity costs of the required traffic capacities. An economic framework for market driven network neutrality in broadband Internet is provided, consisting of congestion pricing and quality of service differentiation. However, network neutrality regulation with its reference point of the traditional TCP would result in regulatory micro-management of traffic network management. --

A Brief History of Mobile Telecommunication in Europe

Since the introduction of mobile telephony in the early fifties in Europe, US and Japan the demand for this service exploded. It seems that the latent demand for mobile telecommunication services for decade's continued to be very strong. Since the introduction of cellular technology the capacity of the services increasingly became able to meet the massive demand. Next and future generations of mobile telecommunication technologies bring increased transmission speed and more versatile services. This forces network operators to organise multi- sourced information flows supplied by service providers to increase the network effect of the system instead of providing the network infrastructure and leave the content to the users as in pure voice telephony. The drivers and inhibitors behind the emergence and recent developments of mobile telecommunications systems in Europe are highlighted in this paper. Liberalisation of the telecom markets in Europe drove new entrants to the market and curbed excessive pricing. However, in recent years the lack of challenging service is the main cause for the wavering development of newer generations of mobile telecommunication services.Telecommunications, Market Structure, Production, Pricing, Technological Change, Economic History, Europe

Network neutrality: Hong Kong's perspectives

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Show Me the Money: Contracts and Agents in the Service Level Agreement Markets

Delivering real-time services (Internet telephony, video conferencing, and streaming media as well as business-critical data applications) across the Internet requires end-to-end quality of service (QoS) guarantees, which requires a hierarchy of contracts. These standardized contracts may be referred to as Service Level Agreements (SLAs). SLAs provide a mechanism for service providers and customers to flexibly specify the service to be delivered. The emergence of bandwidth and service agents, traders, brokers, exchanges and contracts can provide an institutional and business framework to support effective competition. This article identifies issues that must be addressed by SLAs for consumer applications. We introduce a simple taxonomy for classifying SLAs based on the identity of the contracting parties. We conclude by discussing implications for public policy, Internet architecture, and competition

International economic law and the digital divide : a new silk road?

PhDThe failure of the trade negotiations at Seattle, and the collapse of the negotiations at Doha have bought increased attention to the issue of development, aid, and the implementation of special and differential rights in favour of developing countries. This thesis looks to examine one aspect of the many issues facing developed and developing countries in the negotiations that lie ahead, specifically how international economic law can be used in the application of technological processes to help address the Digital Divide. At present, there is an emphasis on development and the needs of developing countries, and that such development needs to be sustainable. Research reviewed in Chapter 2 indicates that growing information technology levels leads to growth of GDP. Importantly the use of ICT‘s will foster growth in the trade of electronic goods and services (electronic intangibles). By making positive attempts to reduce the Digital Divide, DCs and LDCs will be in a better position to access the necessary ICTs required to help grow GDP and facilitate sustainable development. The thesis sets out various measures to help reduce the digital divide and founded in international economic law. Central to the thesis is a new Layering Theory that the Author argues will assist operators (both incumbents and Independent Service Providers) in the developing world to gain access to international backbone Internet networks at cost price, one of the main impediments to reducing the international digital divide. The Layering Theory sets out a procedure for accurately identifying the relevant market for providers of Next Generation Networks (NGNs) and services so that those operators who abuse their dominance by refusing to supply an interconnection service or access to a digital network can be compelled to interconnect their networks to those smaller domestic or third country Internet Service Providers (ISP) operators who require access. By gaining access/interconnection in this way, operators in DCs and LDCs will be in a much better position to take advantage of cheaper production costs to export electronic intangibles overseas. Also, the thesis sets out recommendations for reform of international telecommunications, new provisions on technology transfer to help DCs and LDCs access the ICTs needed to address the Digital Divide, including provisions on technology transfer found in the increasing take-up of bilateral and regional trade agreements—and if there is to be free trade in e-commerce—recommendations for reform of current WTO rules on the classification of electronic goods and services. However, the thesis also argues that the digital divide cannot be addressed without strengthening the human capital base in developing and least developed countries, and that this cannot happen without such states also giving greater effect to the enforcement of civil and political, and economic, social and cultural rights ―at home‖. The thesis asks whether it is possible to define a relationship in IEL between civil and political, and economic social and cultural rights as a collective for example in the form of the much debated and somewhat controversial Right to Development (the ―RTD‖ as defined in this thesis) on the one hand, with economic indicators, such Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) on the other? And if so, how the RTD can be operationalise

A Broadband Access Market Framework: Towards Consumer Service Level Agreements

Ubiquitous broadband access is considered by many to be necessary for the Internet to realize its full potential. But there is no generally accepted definition of what constitutes broadband access. Furthermore, there is only limited understanding of how the quality of end-to-end broadband Internet services might be assured in today?s nascent multi-service, multi-provider environment. The absence of generally accepted and standardized service definitions and mechanisms for assuring service quality is a significant barrier to competitive broadband access markets. In the business data services market and in the core of the Internet, this problem has been addressed, in part, by increased reliance on Service Level Agreements (SLAs). These SLAs provide a mechanism for service providers and customers to flexibly specify the quality of service (QoS) that will be delivered. When used in conjunction with the new standards-based technical solutions for implementing QoS, these SLAs are helping to facilitate the development of robust wholesale markets for backbone transport services and content delivery services for commercial customers. The emergence of bandwidth traders, brokers, and exchanges provide an institutional and market-based framework to support effective competition