Pricing communication networks P12

Kết nốiHai bên được kết nối với các mạng khác nhau có thể giao tiếp với nhau nếu có kết nối của hai mạng. Các ngoại mạng mà kết quả tích cực khi các mạng được kết nối là một lực lượng kinh tế kết nối giữa các nhà cung cấp lái xe mạng. Tiếp cận công nghệ hiện đại, tăng cường kết nối internetwork bằng cách cung cấp truy cập phổ cập. Một khách hàng sử dụng hệ thống truy cập không dây có thể truy cập mạng từ bất kỳ vị trí địa lý. Kết nối quan trọng...
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Pricing communication networks P12 Pricing Communication Networks: Economics, Technology and Modelling. Costas Courcoubetis and Richard Weber Copyright  2003 John Wiley & Sons, Ltd. ISBN: 0-470-85130-912InterconnectionTwo parties that are connected to different networks are able to communicate withone another if there is interconnection of the two networks. The positive networkexternalities that result when networks are connected are an economic force drivinginterconnection between network providers. Modern access technology strengthens inter-network connectivity by providing universal access. A customer using a wireless accesssystem can access the network from any physical location. Interconnection is important if networks are to offer truly global services. Networkservice providers often negotiate special interconnection agreements and tariffs so theycan provide the best service to their end-customers. These play a vital role in ensuringthe smooth operation of today’s worldwide Internet. They also provide substantial incomefor network operators who have invested in building large backbone networks. By buyinginterconnectivity, a small network can appear larger to its customers, without investing incostly and rapidly changing infrastructure. This helps it to offer services that can competewith those offered by a network that has invested in greater geographical coverage. There are important incentive issues involved in offering interconnection services. Unlessprevented by the contract, the network that provides the service may be tempted todiscriminate in favour of traffic that originates from its own end-customers and against trafficthat originates from end-customers of its ‘customer’ network. If that customer network is adirect competitor in the market for retail services, then the interconnection service providerhas an incentive to offer a poorer quality of transport to the interconnection traffic than to hisown internal traffic. A carefully chosen interconnection charge can correct this inequalityby making transport quality a measured part of the contract. In this chapter we introduce some important concepts in interconnection services. Sec-tion 12.1 reviews types of interconnection agreement and pricing. In Section 12.2 we brieflyconsider the effect of competition on service differentiation and in Section 12.3 we considerthe factors that motivate networks to interconnect or not. Section 12.4 is about the asymmet-ric information problem that can arise when one network buys interconnection service fromanother. Section 12.5 describes how an incentive contract can be used to solve this problem.12.1 The market structure12.1.1 Peering AgreementsOnce interconnection is in place, a network service provider can use the infrastructuresof a number of other networks to provide services to any of his customers. However,280 INTERCONNECTIONit is only reasonable that he should transfer part of the charge that he makes to hiscustomer to those other providers whose networks are used to provide the customer’sservice. Traditional telephone networks use the so-called accounting rate system to sharecharges. Interconnection charges are computed on a per call basis, and the network inwhich the call originates pays a predefined charge to the network that terminates the call(and possibly to intermediate networks). This is implemented by each carrier computinghis ‘traffic balance’ with the other carriers over a certain time period, and then paying inproportion to it. In today’s data networks, things are different. First, since customers are connected to theInternet and data flows in all directions, there is no notion of charging on a per call basis.Second, interconnection is achieved by there being a number of Network Access Points(NAPs), at which many different networks interconnect with each other. As a functionof the interconnection agreements between network providers, and routing decisions inthe interior of the network (which may depend on how network congestion and topologychanges), data can flow unpredictably through intermediate networks. In present Internetpractice there are two ways that traffic is exchanged between data network providers. Thefirst is peering, in which traffic is exchanged without payment, and the second involvesinterconnection charges for transit traffic. Peering agreements have some distinct characteristics. Peering partners exchange trafficon the bilateral basis that traffic originates from a customer of one partner and terminatesat a customer of the other partner. This allows customers of the two networks to exchangeinform ...