Document Type




Embargo Period



telecommunications, infrastructure, QoS, quality of service, policy, broadband, bandwidth management, DiffServ




Information and Library Science


With the evolution of the telecommunications infrastructure and the emergence of Internet bandwidth as a commodity market, backbone ISPs will encounter a new set of questions regarding with bandwidth and QoS management for the QoS interconnection. Those questions include: How do the different QoS mechanisms affect the resource and quality allocations over the connection? How will the interconnection policy and schedule differ for different demand characteristics for different network services? What will be the quantitative method of resource allocation of QoS services when cost sharing is necessary for interconnection? How would network profitability, consumer surplus and total surplus differ for QoS interconnection with or without the existence of competitive market information such as price and price index from the bandwidth commodity market such as These and other important questions arise with the evolution of the Internet as both a network of QoS networks and a market for the bandwidth. This paper proposes a market based bandwidth management model for DiffServ networks with the implementation of bandwidth brokers. We formulate the optimization problem for the optimal policy of the DiffServ network's on resource allocation. We use the price data of bandwidth commodity markets to capture the opportunity costs for the DiffServ's network services. The different opportunity costs are measured and estimated based on the results of network simulation using statistics of traffic flow measured from a current Internet backbone. By using these economic models, we numerically simulated the behavior of a backbone ISP network provider to optimize its payoff strategies for different assumptions. We test several hypotheses related to the bandwidth management of QoS interconnection based on the results of numerical simulation for different sets of market and demand assumptions. We expect that this paper will be useful to both backbone ISP network planners and the regulators concerning with the interconnection issues of the next generation Internet.

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