On the Economics of Network Interconnections and Net Neutrality

Sravan Patchala, Seung Hyun Lee, Changhee Joo, D. Manjunath

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The Internet of symmetric traffic flows between networks and a hierarchical topology, has long given way to one with a significantly asymmteric traffic flows and a flatter topology. The Internet topology of today may be characterised as having three key types of networks - content providers, user access providers, and transit providers. Further, in this Internet, best-effort routing of centrally stored content using distributed protocols has been seen to be inadequate to provide a suitably reliable transport service to provide the requisite quality of service to the end user. Two important developments to mitigate this gap in the capability of the Internet and the needs of modern content are the following. (1) Proliferation of content distribution networks (2) direct peering between content networks and ISPs. In this paper we analyze the economics of such interconnections. Using microeconomic models from industrial organization literature, we first develop the conditions for a content provider to connect directly to a service provider. Further, when such a direct link is indeed sought, we analyze the quality of the link vis-a-vis the default option of using a transit service. We then analyze the content provider market coverage by the content distribution networks. Finally, we discuss the implications of these results on the objectives sought by net neutrality regimes.

Original languageEnglish
Title of host publication2019 11th International Conference on Communication Systems and Networks, COMSNETS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages192-199
Number of pages8
ISBN (Electronic)9781538679029
DOIs
Publication statusPublished - 2019 May 9
Externally publishedYes
Event11th International Conference on Communication Systems and Networks, COMSNETS 2019 - Bengaluru, India
Duration: 2019 Jan 72019 Jan 11

Publication series

Name2019 11th International Conference on Communication Systems and Networks, COMSNETS 2019

Conference

Conference11th International Conference on Communication Systems and Networks, COMSNETS 2019
Country/TerritoryIndia
CityBengaluru
Period19/1/719/1/11

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Hardware and Architecture
  • Safety, Risk, Reliability and Quality

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