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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 ()
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Zouhaïer M'Chirgui: CREM, LAREQUAD - Association Euromed Management - Marseille

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Abstract: 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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Published in European Management Journal, Elsevier, 2011, 9 (4), pp.306-318. 〈10.1016/j.emj.2010.12.003〉

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00629487

DOI: 10.1016/j.emj.2010.12.003

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