Dark clouds over the Internet?

Prüfer, Jens; Jahn, Eric

doi:10.1016/j.telpol.2007.01.004

Cited by 10 publications

(1 citation statement)

References 17 publications

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“…Therefore, we do not endogenize the Intermediary's price of IPTransit. See Prüfer and Jahn (2007) for a discussion of the influence of Bertrand competition on the Internet backbone industry's outlook and market structure. 15 Refer to the literature mentioned in footnote 5.…”

Section: The Modelmentioning

confidence: 99%

Interconnection and competition among asymmetric networks in the Internet backbone market

Jahn

Prüfer

2008

Information Economics and Policy

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JEL classification: L10 L96 D43 Keywords:Internet backbone Endogenous network interconnection Asymmetric networks Two-way access pricing a b s t r a c tWe examine the interrelation between interconnection and competition in the Internet backbone market. Networks that are asymmetric in size choose among different interconnection regimes and compete for end-users. We show that a direct interconnection regime, peering, softens competition as compared to indirect interconnection since asymmetries become less influential when networks peer. If interconnection fees are paid, the smaller network pays the larger one. Sufficiently symmetric networks enter a Peering agreement while others use an intermediary network for exchanging traffic. This is in line with considerations of a non-US policy maker. In contrast, US policy makers prefer that relatively asymmetric networks peer.Ó

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Section: The Modelmentioning

confidence: 99%

Interconnection and competition among asymmetric networks in the Internet backbone market

Jahn

Prüfer

2008

Information Economics and Policy

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Network neutrality and the nature of competition between network operators

Kocsis

Bijl

2007

IEEP

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The neutral architecture of the Internet is being challenged by various parties, such as network operators providing the connections to end-users, who are interested in gaining control of the information exchanged over the Internet. What are the effects on competition and welfare of such practices? Currently, there exists very little economic theory on network neutrality. This paper provides a preliminary analysis of the type of economic modeling that can address network neutrality, as well as of the type of results that can be expected.

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Internet service provision and content services: paid peering and competition between internet providers

2017

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We consider the relationship of Internet service providers (ISP) and content service providers (CP) in the Internet ecosystem. Currently the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth demanding video services. The further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision.We develop modeling tools for evaluation of business models of ISPs and present results of analysis of two models with the potential for generation of additional cash flows for ISP: paid content peering and service differentiation. Firstly, we show that under certain conditions on the cost structure and the level of demand elasticity and uncertainty, it can be profitable for a powerful content provider to resort to paid content peering, thus transferring to the ISP a part of his content provision revenue. The resulting business model may provide substantial benefits to all major participants in this ecosystem: network providers, content and service providers and end users. After this we consider competition in the Internet provision sector and show that also in this case the paid content peering can help ISPs to expand the network capacity and at the same time increase profits of content providers. The end users benefit from the lower prices for content services. Finally, we consider the

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Dark clouds over the Internet?

Cited by 10 publications

References 17 publications

Interconnection and competition among asymmetric networks in the Internet backbone market

Interconnection and competition among asymmetric networks in the Internet backbone market

Network neutrality and the nature of competition between network operators

Internet service provision and content services: paid peering and competition between internet providers

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