A New Bilateral Arrangement between Interconnected Providers

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Davoyan, Ruzana; Altmann, Jorn; Effelsberg, Wolfgang
Issue Date
ICQT 2009
ICQT 2009, 6th International Workshop on Internet Charging and QoS Technologies, Aachen, Germany, May 2009
Interconnection arrangement,intercarrier compensation,Internet economics
Cost allocation between interconnected networks is based on
measured traffic flows. This principle, however, does not provide a fair way for
sharing costs. In this paper, a new bilateral model, called Differentiated Trafficbased
Interconnection Agreement (DTIA) for intercarrier compensation is presented.
In particular, the approach aims to determine the original initiator of a
transmission by means of traffic differentiation into two types and to compensate
the interconnection costs. Unlike the existing financial settlements, under
which the payments are made based on the traffic flows, the proposed method
suggests costs compensation according to the differentiated traffic flows. Further,
in order to support the described payment scheme, a simple and scalable
traffic management mechanism was designed. The results obtained from the
comparative analysis showed that determination of a transmission initiator induces
cost sharing between all parties and therefore, reduces the interconnection
payments between providers.
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College of Engineering/Engineering Practice School (공과대학/대학원)Program in Technology, Management, Economics and Policy (협동과정-기술·경영·경제·정책전공)Others_협동과정-기술·경영·경제·정책전공
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