SHERP

Investigating the Influence of Market Shares on Interconnection Settlements

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Authors
Davoyan, Ruzana; Altmann, Jorn
Issue Date
2008-11
Publisher
Globecom 2008
Citation
Globecom 2008, IEEE Global Telecommunications Conference, New Orleans, USA, November 2008
Keywords
Interconnection arrangementintercarrier compensationInternet economics
Abstract
This paper investigates the role of providers’
market shares for consumers and websites on interconnection
settlements between networks. We proposed to differentiate
traffic into two types, referred to as native and stranger in order
to determine an original initiator of transmission in the IP
network and to compensate the interconnection costs. In
comparison to the existing financial settlement, under which the
payments are based on the net traffic flows, the proposed model
governs cost compensation according to the differentiated traffic
flows. Analytical studies were provided using Nash bargaining
solution to explore how the presented approach affects the
providers’ payments. The key consequence of the obtained
results shows that symmetry of the costs is not required
prerequisite for peering, and asymmetric providers can arrange
interconnection without monetary transfers.
Language
English
URI
http://hdl.handle.net/10371/6797
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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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