2,839 research outputs found
Subscriber churn in the Australian ISP market
Rapid growth in Internet use, combined with easy market entry by Internet service providers (ISPs), has resulted in a highly competitive supply of Internet services. Australian
ISPs range in size from a few large national operators to niche ISPs focused on specialised service. With many ISPs currently not profitable, subscriber retention is an important aspect of survival. This study develops a model which relates the probability of subscriber churn to
various service attributes and subscriber characteristics. Estimation results show that churn probability is positively associated with monthly ISP expenditure, but inversely related to household income. Pricing also matters with subscribers preferring ISPs which offer flat-rate pricing arrangements.
Modeling Tiered Pricing in the Internet Transit Market
ISPs are increasingly selling "tiered" contracts, which offer Internet
connectivity to wholesale customers in bundles, at rates based on the cost of
the links that the traffic in the bundle is traversing. Although providers have
already begun to implement and deploy tiered pricing contracts, little is known
about how such pricing affects ISPs and their customers. While contracts that
sell connectivity on finer granularities improve market efficiency, they are
also more costly for ISPs to implement and more difficult for customers to
understand. In this work we present two contributions: (1) we develop a novel
way of mapping traffic and topology data to a demand and cost model; and (2) we
fit this model on three large real-world networks: an European transit ISP, a
content distribution network, and an academic research network, and run
counterfactuals to evaluate the effects of different pricing strategies on both
the ISP profit and the consumer surplus. We highlight three core findings.
First, ISPs gain most of the profits with only three or four pricing tiers and
likely have little incentive to increase granularity of pricing even further.
Second, we show that consumer surplus follows closely, if not precisely, the
increases in ISP profit with more pricing tiers. Finally, the common ISP
practice of structuring tiered contracts according to the cost of carrying the
traffic flows (e.g., offering a discount for traffic that is local) can be
suboptimal and that dividing contracts based on both traffic demand and the
cost of carrying it into only three or four tiers yields near-optimal profit
for the ISP
Using Tuangou to reduce IP transit costs
A majority of ISPs (Internet Service Providers) support connectivity to the entire Internet by transiting their traffic via other providers. Although the transit prices per Mbps decline steadily, the overall transit costs of these ISPs remain high or even increase, due to the traffic growth. The discontent of the ISPs with the high transit costs has yielded notable innovations such as peering, content distribution networks, multicast, and peer-to-peer localization. While the above solutions tackle the problem by reducing the transit traffic, this paper explores a novel approach that reduces the transit costs without altering the traffic. In the proposed CIPT (Cooperative IP Transit), multiple ISPs cooperate to jointly purchase IP (Internet Protocol) transit in bulk. The aggregate transit costs decrease due to the economies-of-scale effect of typical subadditive pricing as well as burstable billing: not all ISPs transit their peak traffic during the same period. To distribute the aggregate savings among the CIPT partners, we propose Shapley-value sharing of the CIPT transit costs. Using public data about IP traffic of 264 ISPs and transit prices, we quantitatively evaluate CIPT and show that significant savings can be achieved, both in relative and absolute terms. We also discuss the organizational embodiment, relationship with transit providers, traffic confidentiality, and other aspects of CIPT
Subscriber churn in the Australian ISP market
Rapid growth in Internet use, combined with easy market entry by Internet service providers (ISPs), has resulted in a highly competitive supply of Internet services. Australian ISPs range in size from a few large national operators to niche ISPs focused on specialised service. With many ISPs currently not profitable, subscriber retention is an important aspect of survival. This study develops a model which relates the probability of subscriber churn to various service attributes and subscriber characteristics. Estimation results show that churn probability is positively associated with monthly ISP expenditure, but inversely related to household income. Pricing also matters with subscribers preferring ISPs which offer flat-rate pricing arrangements.Internet; customer churn; pricing
Pricing and Revenue Sharing between ISPs under Content Sharing
Department of Electrical EngineeringAs sponsored data with subsidized access cost gains popularity in industry, it is essential to understand its impact on the Internet service market. We investigate the interplay among Internet Service Providers (ISPs), Content Provider (CP) and End User (EU), where each player is selfish and wants to maximize its own profit. In particular, we consider multi-ISP scenarios, in which the network connectivity between the CP and the EU is jointly provided by multiple ISPs. We first model non-cooperative interaction between the players as a four-stage Stackelberg game, and derive the optimal behaviors of each player in equilibrium. Taking into account the transit price at intermediate ISP, we provide in-depth understanding on the sponsoring strategies of CP. We then study the effect of cooperation between the ISPs to the pricing structure and the traffic demand, and analyze their implications to the players. We further build our revenue sharing model based on Shapley value mechanism, and show that the collaboration of the ISPs can improve their total payoff with a higher social welfare.ope
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