Network Neutrality Debate and ISP Inter-Relations: Traffic Exchange, Revenue Sharing, and Disconnection Threat
Prof. Patrick MaillÚ
March 2nd, 2012
The network neutrality debate originally stems from the growing traffic asymmetry between ISPs, questioning the established peering or transit agreements. That tendency is due to popular content providers connected to the network through a single ISP, and whose traffic is not charged by distant ISPs. We propose in this paper to review the economic transit agreements between ISPs in order to determine their best strategy. We define a model with two ISPs, each providing direct connectivity to a fixed proportion of the content and competing in terms of price for end users.
We analyze and compare thanks to game-theoretic tools three different situations: the case of peering between the ISPs, the case where ISPs do not share their traffic (exclusivity arrangements), and the case where they fix a transfer price per unit of volume. The impact on the network neutrality debate is then discussed.
Patrick MaillÚ graduated from Ecole Polytechnique and Telecom ParisTech, France, in 2000 and 2002, respectively. He has been an assistant professor at the Networks, Security, Multimedia department of Telecom Bretagne since 2002, where he obtained his PhD in applied mathematics in 2005, followed by a 6-month visit to Columbia University in 2006. His research interests are on game theory and economic concepts applied to telecommunication ecosystems: resource pricing, routing, consequences of user selfishness on network performance.