Transit versus (Paid) Peering: Interconnection and Competition in the Internet Backbone Market
نویسنده
چکیده
We examine the strategic interaction between interconnection and competition in the Internet backbone market. Networks asymmetric in size choose among different interconnection regimes, IP-Transit, Bill-and-Keep Peering, and Paid Peering, and compete for end-users. We show that sufficiently symmetric networks enter a Peering agreement while otherwise use an intermediary network for exchanging traffic. This is structurally in line with considerations of a non-US policy maker. In contrast, US policy makers prefer Peerings among relatively asymmetric networks.
منابع مشابه
Interconnection and competition among asymmetric networks in the Internet backbone market
We examine the interrelation between interconnection and competition in the Internet backbone market. Networks that are asymmetric in size choose among different interconnection regimes and compete for end-users. We show that a direct interconnection regime, peering, softens competition as compared to indirect interconnection since asymmetries become less influential when networks peer. If inte...
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