DocumentCode
110813
Title
Impact of Competition Between ISPs on the Net Neutrality Debate
Author
Coucheney, Pierre ; Maille, Patrick ; Tuffin, Bruno
Author_Institution
INRIA Rennes BretagneAtlantique, Rennes, France
Volume
10
Issue
4
fYear
2013
fDate
Dec-13
Firstpage
425
Lastpage
433
Abstract
Network neutrality is the topic of a vivid and very sensitive debate, in both the telecommunication and political worlds, because of its potential impact in everyday life. That debate has been raised by Internet Service Providers (ISPs), complaining that content providers (CPs) congest the network with insufficient monetary compensation, and threatening to impose side payments to CPs in order to support their infrastructure costs. While there have been many studies discussing the advantages and drawbacks of neutrality, there is no game-theoretical work dealing with the observable situation of competitive ISPs in front of a (quasi-)monopolistic CP. Though, this is a typical situation that is condemned by ISPs, and, according to them, another reason of the non-neutrality need. We develop and analyze here a model describing the relations between two competitive ISPs and a single CP, played as a three-level game corresponding to three different time scales. At the largest time scale, side payments (if any) are determined. At a smaller time scale, ISPs decide their (flat-rate) subscription fee (toward users), then the CP chooses the (flat-rate) price to charge users. Users finally select their ISP (if any) using a price-based discrete choice model, and decide whether to also subscribe to the CP service. The game is analyzed by backward induction. As a conclusion, we obtain among other things that non-neutrality may be beneficial to the CP, and not necessarily to ISPs, unless the side payments are decided by ISPs.
Keywords
Internet; game theory; pricing; socio-economic effects; ISP competition; Internet content providers; Internet service providers; backward induction; competitive ISP; game-theoretical work; monetary compensation; monopolistic CP; network neutrality; price-based discrete choice model; side payments; subscription fee; three-level game; Competitive analysis; Internet; Internet service providers; Investment; Nash equilibrium; Pricing; Network neutrality; game theory; pricing;
fLanguage
English
Journal_Title
Network and Service Management, IEEE Transactions on
Publisher
ieee
ISSN
1932-4537
Type
jour
DOI
10.1109/TNSM.2013.090313.120326
Filename
6589032
Link To Document