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The Economic Implications of Edge-Directed Routing: A Network Operator’s Perspective

Authors:
Patrick Kwadwo Agyapong
Marvin Sirbu

Keywords: edge-directed routing; future Internet architecture; economic incentives

Abstract:
Edge-directed routing, a paradigm where sources and sinks of traffic, rather than the network, specify the com- munication path has recently gained attention as a means to deal effectively with potential conflicts that may arise between various stakeholders in the future Internet. In this paper, we use a simple economic model to show that contrary to current economic thinking, networks can deploy edge-directed routing without raising prices, provided that the service results in a relative increase in external traffic that outweighs the relative increase in costs. However, when edge-directed routing merely results in traffic shift from one path to another, then price increases are required to make it economically viable. Hence, we recommend that edge-directed routing protocols put in place payment mechanisms and support systems in their design to facilitate various pricing strategies.

Pages: 5 to 10

Copyright: Copyright (c) IARIA, 2012

Publication date: June 24, 2012

Published in: conference

ISSN: 2308-443X

ISBN: 978-1-61208-204-2

Location: Venice, Italy

Dates: from June 24, 2012 to June 29, 2012