Abstract
Due to a lack of incentives, Internet peerings are a notorious bandwidth bottleneck. Through the use of direct interconnection and content delivery networks, content providers are able to provide better services to their customers. These technologies have a profound impact on the business models of internet service providers. Instead of competing for consumers and keeping uplink connection costs low, ISPs face a two-sided market in which they compete for EUs and generate revenues on the CP side of the market. This work presents a formal model for the providers’ pricing decision towards content providers and discusses consequences for the Internet.
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Hau, T., Brenner, W. (2009). Price Setting in Two-Sided Markets for Internet Connectivity. In: Reichl, P., Stiller, B., Tuffin, B. (eds) Network Economics for Next Generation Networks. ICQT 2009. Lecture Notes in Computer Science, vol 5539. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-01796-4_7
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DOI: https://doi.org/10.1007/978-3-642-01796-4_7
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