A Framework for Tiered Service in MPLS Networks

Many network operators offer some type of tiered service, in which users may select only from a small set of service levels (tiers). Such a service has the potential to simplify a wide range of core network functions, allowing the providers to scale their operations efficiently. In this work, we provide a theoretical framework for reasoning about and tackling algorithmically the general problem of service tier selection. Drawing upon results from discrete location theory, we formulate the problem as a p-median problem under a new directional distance measure, and we develop efficient algorithms for a number of important variants. Our main finding is that, by appropriately selecting the set of service levels, network providers may realize the benefits of tiered service with only a small sacrifice in network resources.