How to provide Quality of Service guarantees in the Internet? Lessons learnt from the airline and card-based payment sectors

Zouhaïer M'Chirgui and Thierry Pénard

European Management Journal, 2011, vol. 29, issue 4, 306-318

Abstract: Summary The increasing demand for real-time applications (video conferencing, Internet telephony--VoIP--etc.) delivered over Internet networks requires stringent Quality of Service (QoS) guarantees. Internet traffic routing based on a Best-effort basis can hardly support these QoS requirements. This article argues that Internet services providers should form strategic alliances to coordinate their investments in a new-generation infrastructure that could provide innovative services with QoS guarantees. This is supported by a topological analysis of the interconnection agreements among top-level Internet providers and by the lessons derived from alliances forged in the airline and card-based payment sectors. We conclude that on the Internet, the optimal organizational form should be a centralized alliance with a hub-and-spoke network structure.

Keywords: Internet; Quality; of; Service; (QoS); Interconnection; agreements; Alliances; Networks (search for similar items in EconPapers)
Date: 2011
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