Paid Peering, Settlement-Free Peering, or Both?

With the rapid growth of congestion-sensitive and data-intensive applications, traditional settlement-free peering agreements with best-effort delivery often do not meet the QoS requirements of content providers (CPs). Meanwhile, Internet access providers (IAPs) feel that revenues from end-users are not sufficient to recoup the upgrade costs of network infrastructures. Consequently, some IAPs have begun to offer CPs a new type of peering agreement, called paid peering, under which they provide CPs with better data delivery quality for a fee. In this paper, we model a network platform where an IAP makes decisions on the peering types offered to CPs and the prices charged to CPs and end-users. We study the optimal peering schemes for the IAP, i.e., to offer CPs both the paid and settlement-free peering to choose from or only one of them, as the objective is profit or welfare maximization. Our results show that 1) the IAP should always offer the paid and settlement-free peering under the profit-optimal and welfare-optimal schemes, respectively, 2) whether to simultaneously offer the other peering type is largely driven by the type of data traffic, e.g., text or video, and 3) regulators might want to encourage the IAP to allocate more network capacity to the settlement-free peering for increasing user welfare

Link State Contract Routing

The Internet's simple design resulted in huge success in basic telecommunicationservices. However, the current Internet architecture has failed in terms of introducingmany innovative technologies as end-to-end (E2E) services such as multicasting,guaranteed quality of services (QoS) and many others. We argue that contractingover static service level agreements (SLA) and point-to-anywhere service definitionsare the main reasons behind this failure. In that sense, the Internet architecture needsmajor shifts since it neither allows (i) users to indicate their value choices at sufficientgranularity nor (ii) providers to manage risks involved in investment for new innovativeQoS technologies and business relationships with other providers as well as users.To allow these much needed economic flexibilities, we introduce contract-switching asa new paradigm for the design of future Internet architecture. In this work, we implementcontract-routing framework with specific focus on long-term contracted servicesin Link State Contract Routing scheme. Our work shows that E2e guaranteed QoSservices can be achieved in routing over contracted edge-to-edge service abstractionswhich are built on today's popular protocols with reasonable protocol overhead