Internet Interconnection Economic Model and its Analysis: Peering and Settlement
Peering and transit are two types of Internet interconnection among ISPs. Peering has been a core concept to sustain Internet industry. However, for the past several years, many ISPs broke their peering arrangement because of asymmetric traffic pattern and asymmetric benefit and cost from the pee...
| Main Authors: | , |
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| Language: | en_US |
| Published: |
2002
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/1483 |
| _version_ | 1826218118717898752 |
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| author | Shin, Seung-Jae Weiss, Martin |
| author_facet | Shin, Seung-Jae Weiss, Martin |
| author_sort | Shin, Seung-Jae |
| collection | MIT |
| description | Peering and transit are two types of Internet interconnection among ISPs.
Peering has been a core concept to sustain Internet industry. However, for the
past several years, many ISPs broke their peering arrangement because of
asymmetric traffic pattern and asymmetric benefit and cost from the peering.
Even though traffic flows are not a good indicator of the relative benefit of an
Internet interconnection between the ISPs, it is needless to say that cost is a
function of traffic and the only thing that we can know for certain is
inbound/outbound traffic volumes between the ISPs. In this context, we suggest
Max {inbound traffic volume, outbound traffic volume} as an alternative
criterion to determine the Internet settlement between ISPs and we demonstrate
this rule makes ISPs easier to make a peering arrangement. In our model, the
traffic volume is a function of a market share. We will show the market share
decides traffic volume, which is based on the settlement between ISPs. As a
result, we address the current interconnection settlement problem with
knowledge of inbound and outbound traffic flows and we develop an analytical
framework to explain the Internet interconnection settlement. |
| first_indexed | 2024-09-23T17:14:09Z |
| id | mit-1721.1/1483 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T17:14:09Z |
| publishDate | 2002 |
| record_format | dspace |
| spelling | mit-1721.1/14832019-04-10T10:36:43Z Internet Interconnection Economic Model and its Analysis: Peering and Settlement Shin, Seung-Jae Weiss, Martin Internet interconnection settlement peering transit Peering and transit are two types of Internet interconnection among ISPs. Peering has been a core concept to sustain Internet industry. However, for the past several years, many ISPs broke their peering arrangement because of asymmetric traffic pattern and asymmetric benefit and cost from the peering. Even though traffic flows are not a good indicator of the relative benefit of an Internet interconnection between the ISPs, it is needless to say that cost is a function of traffic and the only thing that we can know for certain is inbound/outbound traffic volumes between the ISPs. In this context, we suggest Max {inbound traffic volume, outbound traffic volume} as an alternative criterion to determine the Internet settlement between ISPs and we demonstrate this rule makes ISPs easier to make a peering arrangement. In our model, the traffic volume is a function of a market share. We will show the market share decides traffic volume, which is based on the settlement between ISPs. As a result, we address the current interconnection settlement problem with knowledge of inbound and outbound traffic flows and we develop an analytical framework to explain the Internet interconnection settlement. 2002-07-22T15:36:52Z 2002-07-22T15:36:52Z 2002-07-22T15:36:53Z http://hdl.handle.net/1721.1/1483 en_US 110436 bytes application/pdf application/pdf |
| spellingShingle | Internet interconnection settlement peering transit Shin, Seung-Jae Weiss, Martin Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title | Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title_full | Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title_fullStr | Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title_full_unstemmed | Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title_short | Internet Interconnection Economic Model and its Analysis: Peering and Settlement |
| title_sort | internet interconnection economic model and its analysis peering and settlement |
| topic | Internet interconnection settlement peering transit |
| url | http://hdl.handle.net/1721.1/1483 |
| work_keys_str_mv | AT shinseungjae internetinterconnectioneconomicmodelanditsanalysispeeringandsettlement AT weissmartin internetinterconnectioneconomicmodelanditsanalysispeeringandsettlement |