[NRG] Reminder: NRG meeting: How Many Tiers? Pricing in the Internet Tran... @ Mon Oct 24 11am - 12pm (NRG at BU)

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Wed Oct 19 11:00:02 EDT 2011

This is a reminder for:

Title: NRG meeting: How Many Tiers? Pricing in the Internet Transit Market
Presenter: Raymond
Paper: http://conferences.sigcomm.org/sigcomm/2011/papers/sigcomm/p194.pdf

ISPs are increasingly selling “tiered” contracts, which offer Internet  
connectivity to wholesale customers in bundles, at rates based on the cost  
of the links that the traffic in the bundle is traversing. Although  
providers have already begun to implement and deploy tiered pricing  
contracts, little is known about how to structure them. Although contracts  
that sell connectivity on finer granularities improve market efficiency,  
they are also more costly for ISPs to implement and more difficult for  
customers to understand. Our goal is to analyze whether current tiered  
pricing practices in the wholesale transit market yield optimal profits for  
ISPs and whether better bundling strategies might exist. In the process, we  
offer two contributions: (1) we develop a novel way of mapping traffic and  
topology data to a demand and cost model; and (2) we fit this model on  
three large real-world networks: an European transit ISP, a content
distribution network, and an academic research network, and run  
counterfactuals to evaluate the effects of different bundling strategies.  
Our results show that the common ISP practice of structuring tiered  
contracts according to the cost of carrying the traffic flows (e.g.,  
offering a discount for traffic that is local) can be suboptimal and that  
dividing contracts based on both traffic demand and the cost of carrying it  
into only three or four tiers yields near-optimal profit for the ISP.
When: Mon Oct 24 11am – 12pm Eastern Time
Where: MCS-148, 111 Cummington Street, Boston, MA 02215
Calendar: NRG at BU
     * michel.machado at gmail.com - creator

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