• 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