{"title":"Can ISPs be profitable without violating “network neutrality”?","authors":"A. Dhamdhere, C. Dovrolis","doi":"10.1145/1403027.1403031","DOIUrl":"https://doi.org/10.1145/1403027.1403031","url":null,"abstract":"At the core of the network neutrality debate we find that ISPs, in particular the last-mile Access Providers (APs), are trying to find new ways to be profitable, despite the fact that their transit traffic has been dramatically increasing, while they continue to charge their customers a flat monthly price. In this paper, we consider a simple model of an AP that serves its users traffic from a number of Content Providers (CPs). The AP can communicate with the CPs through a Transit Provider (TP) or through settlement-free peering. We examine the profitability of the AP under a \"baseline\" model that is based on current practice, considering the heavy tailed variability in per-user traffic and in the popularity of different CPs. Further, we consider other strategies, such as usage-based pricing for heavy hitters, selective peering with popular CPs, and content caching. Our results indicate that an AP can be profitable without the risk of losing users and without violating \"network neutrality\", through selective peering with CPs and/or content caching.","PeriodicalId":122327,"journal":{"name":"Workshop on Economics of Networks, Systems and Computation","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132875638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Auction, but don't block","authors":"Xiaowei Yang","doi":"10.1145/1403027.1403032","DOIUrl":"https://doi.org/10.1145/1403027.1403032","url":null,"abstract":"This paper argues that ISP's recent actions to block certain applications (e.g. BitTorrent) and attempts to differentiate traffic could be a signal of bandwidth scarcity. Bandwidth-intensive applications such as VoD could have driven the traffic demand to the capacity limit of their networks. This paper proposes to let ISPs auction their bandwidth, instead of blocking or degrading applications. A user places a bid in a packet header based on how much he values the communication. When congestion occurs, ISPs allocate bandwidth to those users that value their packets the most, and charge them the Vickrey auction price. We outline a design that addresses the technical challenges to support this auction and analyze its feasibility. Our analysis suggests that the design have reasonable overhead and could be feasible with modern hardware.","PeriodicalId":122327,"journal":{"name":"Workshop on Economics of Networks, Systems and Computation","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114905018","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pricing internet access for disloyal users: a game-theoretic analysis","authors":"G. Biczók, S. Kardos, T. Trinh","doi":"10.1145/1403027.1403040","DOIUrl":"https://doi.org/10.1145/1403027.1403040","url":null,"abstract":"In this paper we investigate the impact of customer loyalty on the price competition between local Internet Service Providers who sell Internet access to end-users. The main contribution of this paper is threefold. First, we develop a repeated game, and show how cooperation between ISPs resulting in higher profits can be enforced through a threat strategy in the presence of customer loyalty. Second, we investigate the case of a differentiated customer population by introducing dual reservation values, and show how it leads to new, pure strategy Nash equilibra for a wide range of demand functions. Third, we develop two novel models for customer loyalty, along with a simulation tool that is capable of demonstrating the impact of the novel models. We argue that our findings can bring us closer to the understanding of economic interactions among ISPs and, at the same time, can motivate researchers to incorporate a finer-grained user behavior model involving customer loyalty in their investigations of such interactions.","PeriodicalId":122327,"journal":{"name":"Workshop on Economics of Networks, Systems and Computation","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129834445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Trading potatoes in distributed multi-tier routing systems","authors":"Y. Shavitt, Yaron Singer","doi":"10.1145/1403027.1403042","DOIUrl":"https://doi.org/10.1145/1403027.1403042","url":null,"abstract":"The The Internet is an example of a distributed system where the task of routing is performed in a multi-tier fashion: interdomain paths between autonomously-managed networks are sub ject to a global agreement (BGP), and the choice of intradomain paths is left to the discretion of each such network. When forwarding packets, Autonomous Systems (ASes) frequently choose the shortest path in their network to the next-hop AS in the BGP path, a strategy known as hot potato routing. As a result, paths in the Internet are suboptimal from a global perspective. In this paper we explore complementary deviations from hot-potato routing in a manner which benefits both ASes. We show that even for a pair of ASes obtaining such path trading solutions is NP-complete, and give pseudo-polynomial algorithms to find them. We use PoP-level maps of ASes obtained from measurements of real AS topologies in the Internet to show that, in comparison to hot-potato routing, path trading can substantially reduce the cost of intradomain routing.","PeriodicalId":122327,"journal":{"name":"Workshop on Economics of Networks, Systems and Computation","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129900697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}