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

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

Knowledge Networks, the Internet and, Development

Information and Communications Technologies (ICTs) are playing a significant role in economic, political and cultural development. The relationship between technologies supporting information processing and distribution, and the application of that knowledge for development purposes has only recently come into focus. The discovery, publication and application of new knowledge, the dissemination of information concerning best practices and the exchange of views and opinions are now considered essential elements of development work. These functions it is now increasingly recognized, are effectively facilitated by ICTs. In the area of economic development ICTs can create new jobs, new industry and service sector opportunities and a more educated work force. They make possible the cross-border flow of information, promote international trade, particularly high technology, bits rather than atoms, type trade and help to attract foreign direct investment. ICTs can also contribute to political development by fostering good governance and streamlining bureaucratic procedures through intra-governmental networking. The creative use of ICTs, particularly the Internet, in the areas of health care, education, environmental protection and in other developmentally important fields can substantially contribute to the advancement of developing societies

Nothing Ventured, Nothing Gained? Venture Capital, Innovation & Entrepreneurship in Emerging Markets

This paper examines the probability of domestic and international venture capital playing a critical role in the rapid development of IT and Communications technologies in emerging nations. First we examine the venture capital point of view highlighting what today's venture capitalists require from an emerging market investment with a focus on the role that intellectual property invention plays. Then we examine the role of Internet and communications technologies and comment on innovation in this context. This will enable us to more fully evaluate the conditions of specific nations in encouraging the development of entrepreneurship and technical and business innovations. Finally, we explore in more depth review the role that ethnic diaspora play in encouraging entrepreneurship in developing nations, as well as within the global heart of Internet innovation and entrepreneurship itself, Silicon Valley

The Post-.COM Internet: Toward Regular and Objective Procedures for Internet Governance

This paper makes the case for using regular and objective procedures to assign new Internet top-level domain names (TLDs) instead of the unscheduled, irregular, discretionary and ad hoc processes and criteria currently used by the Internet Corporation for Assigned Names and Numbers (ICANN). Adopting a regularized process is past due: after 5 years of existence, ICANN has yet to define a method for managing TLD additions to the root. Yet, the root of the DNS is an important international resource, and handling applications for new TLDs is one of ICANN’s most significant policy responsibilities. The paper shows that ICANN’s current approach to TLD additions is anti-competitive and fosters rent-seeking, political strife, and the potential if not the reality for corruption. At the least it perpetuates the perception of ICANN as operating with irregular and subjective procedures. This is a disservice both to ICANN and to the broader Internet community. The paper proposes a procedure for adding 40 top-level domains to the Internet domain name system on an annual basis. It puts forward a process for doing so that is predictable in timing and procedure, rule-driven, and economically efficient. Separate rounds would be held for commercial and noncommercial applicants, with 10 noncommercial TLDs and 30 commercial ones being added yearly. The paper analyzes the technical constraints on TLD additions and shows that the DNS (Domain Name System) protocol imposes only two significant limitations: the number of additions should be set at a low enough level to retain the hierarchical structure of the name space, and the rate of change in the root zone should not exceed the capacity of the root zone manager to accurately and reliably update and distribute the root zone file. In response to these constraints, we propose capping TLD additions at 40 per year. The specific number is admittedly arbitrary; in fact, any number between 30 and 100 would be acceptable according to many experts. For the sake of procedural simplicity and business certainty we argue that it makes sense to fix the number at a known level. We also show that root server load is not a serious factor limiting TLD additions. The paper argues that there is now and likely always will be demand for TLD additions. The paper suggests that ICANN’s role is not to second-guess the marketplace by choosing which of these TLDs are “good ideas” or most likely to succeed, but simply to coordinate TLD assignments. Consumers and suppliers interacting in the marketplace should determine which ones succeed. The paper concludes by anticipating and attempting to answer arguments that might be advanced against the proposed procedure

Internet Economics: What Happens When Constituencies Collide?

This paper describes the emerging field of Internet Economics and some of the constituencies which are shaping it. It defines the motivating factors for looking at this area, reviews some recent research results, and explores areas of overlapping interest. The paper concludes with six recommendations for further work. different academic disciplines which have done work related to Internet economics: technology, economics, and policy. Each of these areas has important contributions to make to the field but there has been little consensus across disciplines (or even within disciplines) on which direction to take. Figure 1 shows a Venn diagram which tries to characterize the constituencies' current motivation to look at Internet economics

Optical Networks and the Future of Broadband Services

The evolution of broadband services will depend on the widespread deployment of optical networks. The deployment of such networks will, in turn, help drive increased demand for additional capacity. In this world, service providers will have a growing need to be able to flexibly adjust capacity to accommodate uncertain and growing demand. In this article, we present a cost model that highlights the advantages of new optical networking technologies such as Dense Wavelength Division Multiplexing (DWDM) over traditional architectures for optical networks. This analysis highlights the increased flexibility and scalability of DWDM networks, which lowers the deployment costs of such networks in light of growing and uncertain demand. The DWDM architecture holds the promise of allowing the emergence of wavelength markets, where traffic could be switched between service provider networks at the optical layer (without the need for multiple costly and wasteful electronic/optical conversions). While the DWDM and Optical Cross-Connect (OxC) technologies provide a technical infrastructure for supporting wavelength markets, additional developments are also likely to be required. This paper also considers some of the impediments to the growth of wavelength markets, namely the need for secondary markets and standardized contracts

Best Effort versus Spectrum Markets: Wideband and Wi-Fi versus 3G MVNOs?

This paper asks is whether (i) 3rd generation wireless services, as embodied in the planned and soon to be offered services emerging first in Asia and Europe, or (ii) the unlicensed wireless services such as 802.11 or wi-fi but also including more advanced wideband and ultrawideband (UWB) services which are being experimented with primarily in North America, offer more compelling visions for advanced wireless services. we conclude that secondary spectrum markets are important for the viability of the 3G industry, and not only for reasons of efficiency. One large difference between 2G and 3G networks, observed in our models, was that voice services alone would not generate sufficient revenues for a 3G system. License holders which up to now have concentrated on selling a single product, will need to develop a much larger range of advanced applications, which will have to be marketed and packaged in different ways for different market segments