Intercarrier Compensation in Unilateral and Bilateral Arrangements

Ruzana Davoyan (), Jörn Altmann and Wolfgang Effelsberg
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Wolfgang Effelsberg: Technology Management, Economics, and Policy Program (TEMEP), Seoul National University

No 201041, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: In terms of intercarrier compensation traffic flows are measured to allocate the costs between networks. This method provides a poor basis for sharing any costs. In this work we analyze the benefits of the traffic differentiation on the interconnection charges in unilateral and bilateral arrangements. We determine an original initiator of a transmission and compensate differently for the distinguished traffic flows. The presented approach was compared with the existing solutions, which perform cost compensation based on the traffic flows.

Keywords: Interconnection arrangements; intercarrier compensation; Internet economics (search for similar items in EconPapers)
JEL-codes: C61 C62 D40 D45 D86 L14 L86 L96 M15 M21 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2010-01, Revised 2010-01
New Economics Papers: this item is included in nep-net
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Published in IEEE ICCCN 2009, 18th International Conference on Computer Communications and Networks, San Francisco, USA, August 2009

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http://temep-repec.my-groups.de/DP-41.pdf First version, 2010 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:201041

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