A two-sided model of paid peering
نویسندگان
چکیده
Internet users have suffered collateral damage in tussles over paid peering between large ISPs and content providers. Paid is a relationship where two networks exchange traffic with payment, which provides direct access to each other’s customers without having pay third party carry that for them. The issue will arise again when the United States Federal Communications Commission (FCC) considers new net neutrality order. We first consider effect of on broadband prices. adopt two-sided market model an ISP maximizes profit by setting prices price. analytically derive profit-maximizing prices, show they satisfy generalization well-known Lerner rule. Our result shows fees reduce premium plan price, increase video streaming price total tier who subscribe services; however, passes its only portion revenue from peering. increases but decreases as moves settlement-free next consumer surplus. find surplus uni-modal function fee. fee depends elasticities demand streaming. However, maximized are significantly lower than those maximize profit. it does not follow always policy critically incremental cost per subscriber; at different costs, can be negative, zero, or positive. • payment. another network party. high-speed Consumer unimodal Surplus-maximizing fees.
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ژورنال
عنوان ژورنال: Telecommunications Policy
سال: 2022
ISSN: ['0308-5961', '1879-3258']
DOI: https://doi.org/10.1016/j.telpol.2022.102352